Renting Feels Cheaper. Owning Builds Wealth. Here’s the Real Difference.

Renting can feel easier and cheaper on the surface. No repairs. No property taxes. No stressing about mortgage rates. You pay the bill and move on.

But here’s the part almost no one talks about: renting doesn’t build your financial future. Owning does—and the difference is massive over time.

If you’ve been wondering whether buying is still worth it, the long-term numbers are way clearer than most people realize.

Renting vs. Owning: What Actually Happens to Your Money

When you rent, your monthly payment disappears into your landlord’s pocket. When you own, part of your payment comes back to you in the form of equity—your stake in the property.

That equity builds two ways:

• As you pay down your mortgage

• As your home grows in value

Renting gives you none of that. And over time, that difference adds up.

First American recently compared what happens financially when someone rents vs. owns during four key time periods:

• 2006: start of the housing bubble

• 2015: ten years ago

• 2019: pre-pandemic

• 2022: when rates spiked

Every single time, the same thing happened:

• Renters lost money long-term.

• Homeowners gained wealth—often substantially.

Here’s the big-picture view: the solid lines show homeowners’ net worth climbing over time. The dashed line? Renters falling behind, year after year.

 

No matter the year, no matter the market conditions, the result didn’t change.

Time in a home builds wealth. Time renting doesn’t.

And yes, that’s even after factoring in taxes, insurance, repairs, and maintenance. Owning still comes out ahead.

Short-term? Renting can look easier.
Long-term? Owning wins—every single time.

“But Buying Feels Impossible Right Now.” (Here’s the truth.)

Totally valid. The last few years have stretched buyers thin. But conditions are shifting in a good way:

• Mortgage rates have come down from their highs

• Home price growth is cooling

• Incomes have risen

• Zillow reports monthly payments are slightly more manageable than last year

Is buying suddenly easy? No.
Is it easier than even a few months ago? Yes.

And if your plan is to build long-term stability or generational wealth, buying is still the clearer path.

Bottom Line

Renting might feel cheaper today, but owning builds real wealth over time. And with affordability improving bit by bit, the window to buy may be opening sooner than you think.

If you want to see what buying realistically looks like for you—pressure-free—connect with a local agent who can break down your options.