Why Buying a Home Still Pays Off in the Long Run

Renting can definitely feel easier and cheaper, especially right now. Fewer responsibilities, no surprise repairs, and no property taxes to think about, you just pay your rent and carry on.

But here’s the part most people don’t really talk about… renting doesn’t help you build long-term financial security. Meanwhile, owning a home steadily boosts your net worth over time.

So if you’ve been wondering whether buying is still worth it, the long-term benefits may be clearer than you realize.

Renting vs. Owning: What Really Changes Over Time

One of the biggest differences between renting and buying is what happens to your monthly payment.

When you rent, your payment simply covers someone else’s investment. When you own a home, part of what you pay every month comes back to you in the form of equity because you’re paying down your mortgage and benefiting from home price appreciation over time.

So even if renting feels more affordable today, it comes with a long-term cost: you’re not building wealth. And according to research from First American, that missed opportunity adds up in a big way over the years.

They looked at multiple points in time before the housing crash, before the pandemic, and even during recent high-rate years and found the same result every time:
renters lost money over the long run, and homeowners gained it.

Even after including typical homeowner expenses like maintenance and insurance, owning a home consistently came out ahead. Renting didn’t provide any financial return at all.

In other words, homeownership builds wealth, renting doesn’t. And the longer you own, the more that gap grows.

Affordability Is Slowly Improving

You might be thinking, “Okay… but buying still feels tough right now.” Totally fair.

The last few years have been challenging. But things are starting to shift:

• mortgage rates have eased a bit this year

• price growth has cooled

• incomes have risen

And according to Zillow, typical monthly mortgage payments have gotten slightly more manageable compared to this time last year. It’s not a dramatic change but progress is progress.

No, buying isn’t suddenly easy. But it’s becoming more achievable than it was just a short time ago. And history shows the benefits can be well worth it in the long run.

Bottom Line

Renting may feel more affordable today, but owning is what actually builds long-term financial wealth. And with affordability gradually improving, the door to homeownership might be opening a little wider than it was before.

If you’re curious what buying could look like for you, reach out to a local real estate professional who can help you explore your options, without any pressure.

Buying or selling in the Lakes & Mountains Region is so much more than a simple move, it’s choosing the lifestyle you want next. Every road, every neighborhood, every view has its own personality, and I’m here to help you make sense of it all.

If you’re curious about your home’s value or considering a change, I’m right here in the community every day, ready to guide you with clarity and confidence. Call, text, or message anytime, let’s explore the best direction for you.