Renting Vs. Buying in 2025

Have you been wondering whether you should keep renting or finally take the leap into homeownership? It’s a big decision, and let’s be real—renting can feel like the easier option, especially if buying a home seems out of reach.

But here’s something to think about: 70% of prospective buyers fear the long-term consequences of renting, according to a recent report from Bank of America. That includes concerns about not building equity and dealing with rising rents.

Maybe you’re feeling that too—worried about where renting will leave you down the road but still unsure if you can buy right now. The truth is, if you can make the numbers work, homeownership has powerful long-term financial benefits.

Let’s break down why buying a home is worth considering in 2025 and beyond and how it can set you up for the future.

1. Buying a Home Builds Wealth Over Time

Owning a home allows you to turn your monthly housing costs into a long-term investment.

According to data from the Census and the Department of Housing and Urban Development (HUD), home prices tend to rise over time. That’s important because as your home’s value increases and you pay down your mortgage, you build equity—your ownership stake in the home.

And that equity boosts your net worth. In fact, the National Association of Realtors (NAR) found that 79% of buyers believe homeownership is a good financial investment.

If you’re looking for a way to grow your wealth over time, owning a home is one of the most effective ways to do it.

2. Renting Comes with Rising Costs

At first glance, renting might seem like the more affordable choice—especially with today’s home prices and mortgage rates. But the reality is, rent almost always goes up over time.

According to Census data, rents have significantly increased over the decades. That means each time you renew your lease or move to a new place, you could be facing higher monthly costs—without any long-term financial benefit.

And here’s the catch: As rent prices rise, saving for a home becomes harder. So if homeownership is a goal, waiting could actually make it more difficult to achieve down the road.

3. Renting vs. Buying: The Long-Term Impact

At the end of the day, when you rent, your money is gone for good.

Your monthly payments help your landlord build equity—not you. But when you own a home, your payments are an investment in your future.

Now, renting does make sense for those who aren’t ready or able to buy right now. But if you can make the numbers work, owning a home builds equity, grows your wealth, and gives you financial stability over time.

If you’re in a position to buy, homeownership is one of the best ways to take control of your financial future. It’s an investment that pays off over time—and one that many homeowners never regret.

Ready to Explore Your Options?

Do you want to see what starter homes are available in your area? Let’s connect and explore your options—you might be closer to homeownership than you think.