Renting vs. Buying — Making the right choice for you

01/24/24  |  Ellie Botshon

Are you at a crossroads, trying to decide between renting again or buying a home? It's a decision that can have a significant impact on your finances and lifestyle. When making a choice, it's crucial to understand that personalized factors can influence the decision-making process.

A recent study by Today’s Homeowner delves into the costs of renting compared to buying across the United States, backed by data and a survey of 1,000 current renters. While the study presents both benefits and drawbacks of renting vs. buying, it leans slightly towards favoring renting. However, it's important to think critically about these findings. Real estate is hyper-local, and what holds true for one area may not apply to another. For example, the dynamics of the housing market in Idaho differ greatly from those in Massachusetts. 


One key consideration is the duration of your stay. If you anticipate staying in a home for only a year, renting is generally the better choice. It saves time, effort, hassle, and potentially even money, especially considering that a home isn't expected to appreciate significantly within just 12 months. However, there are exceptions even to this rule of thumb! 


Additionally, if you plan on staying in your home for several decades, you can anticipate paying off your mortgage in 30 years or less. The result? You could have years and years of payment-free ownership; the money that used to go to the mortgage company (with tax benefits) can now go towards savings, investments, or vacations. 


Did you know that the national average of time spent living in one home is around nine years? In this case, it often becomes more financially beneficial to buy than to rent nationwide. Think about this: your rent is unlikely to decrease (and will likely only increase) over time. We in real estate use a rule of thumb of a 6% increase in rent per year. However, mortgage rates fluctuate; and when they do, homeowners have the opportunity to refinance and lower their payments once the rates decrease.


Please note that the decision to rent or buy a home is not a one-size-fits-all scenario: It should take into account your specific circumstances, financial goals, life or career goals, personal needs, and the unique dynamics of your local real estate market. Let's chat so we can help you make the right decision for you.


Read More Articles

View All

Work With Us

With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.

Let's Connect

Follow Us on Instagram