FAQ: What's better: buying or renting?

It depends on your personal situation, but buying a home offers long-term stability, wealth creation, and tax advantages – benefits that renting doesn’t provide.

Renting can feel flexible, but it doesn’t protect against rising rental rates. Buying requires large upfront costs, yet it provides predictable monthly payments and the potential to build significant wealth over time. While renting may make sense for a short-term move or lifestyle flexibility, homeownership generally offers greater financial benefits in the long run.

In fact, the National Association of REALTORS® recently highlighted data from the Federal Reserve Survey of Consumer Finance showing that, on average, a homeowner’s net worth is 43 times that of a renter!

Another important factor is equity. Every mortgage payment you make helps you build ownership in an asset that can appreciate over time, whereas rent payments go entirely to a landlord. Over the years, this equity can become a meaningful source of wealth, helping fund future investments, education, or retirement. For many households, the combination of forced savings, tax benefits, and appreciation makes buying a smarter financial move than renting.