Rent vs Buy a Home
Side-by-side comparison of renting versus buying: monthly cash, equity, transaction costs, and typical break-even timelines.
Open calculatorRent
Flexibility and lower upfront cash; no equity build from the home itself.
- Easy to move
- Lower upfront cash
- Landlord handles many repairs
- No home equity
- Rent can rise
- Less control over the space
Buy
Build equity and lock a mortgage payment — with maintenance, tax, and selling costs.
- Equity and potential appreciation
- Payment stability with fixed rates
- Control over renovations
- High transaction costs
- Maintenance risk
- Harder to exit quickly
Renting usually wins under ~5 years. Buying often wins if you stay 7+ years with conservative assumptions. Run the Rent vs Buy Calculator with your city numbers.
Key factors
- Expected years in the home
- Closing and selling costs
- Maintenance, tax, insurance
- Rent growth vs mortgage rate
How to decide
- 1Fix your time horizon
Be honest about how many years you will stay.
- 2Gather local costs
Tax, insurance, HOA, and maintenance — not guesses.
- 3Run rent vs buy
Compare net worth after housing on the same timeline.
- 4Stress-test prices
Try flat and mild down home-price scenarios.
Run the numbers
Free calculators linked to this comparison.
Frequently asked questions
Is renting throwing money away?+
No. Rent buys flexibility. Buying has costs that are also “thrown away” (interest, tax, maintenance). Compare total economics.
How long until buying breaks even?+
Often 5–8 years in many markets once transaction costs are included — but your city can differ a lot.