{"id":5744,"date":"2025-05-29T10:30:00","date_gmt":"2025-05-29T10:30:00","guid":{"rendered":"https:\/\/sandpointrealtyidaho.com\/blog\/2025\/05\/29\/is-it-better-to-rent-or-buy-a-home\/"},"modified":"2025-05-29T10:30:00","modified_gmt":"2025-05-29T10:30:00","slug":"is-it-better-to-rent-or-buy-a-home","status":"publish","type":"post","link":"https:\/\/sandpointrealtyidaho.com\/blog\/2025\/05\/29\/is-it-better-to-rent-or-buy-a-home\/","title":{"rendered":"Is It Better To Rent or Buy a Home?"},"content":{"rendered":"\n
\"Is\n

You\u2019ve probably asked yourself lately: Is it even worth trying to buy a home right now?<\/em><\/p>\n

With high home prices and stubborn mortgage rates, renting can seem like the safer choice right now. Or maybe your only<\/em> choice. That\u2019s a very real feeling. And perhaps buying today isn\u2019t your best move; it\u2019s not for everyone right away. You should only buy a home<\/a> when you\u2019re ready and able to do it, and if the timing is right for you.<\/p>\n

But here\u2019s the thing you need to know about renting.<\/p>\n

While it may feel like a safer bet today \u2013 and in some areas might even be less expensive month-to-month than owning \u2013 it can really cost you more over time.<\/p>\n

In fact, a recent Bank of America<\/em> survey found that 70% of aspiring homeowners worry about what long-term renting means for their future.<\/strong> And they\u2019re not wrong.<\/p>\n

Owning a home may seem way out of reach, but if you make a plan now and steadily work toward it, homeownership comes with serious long-term financial benefits.<\/strong><\/p>\n

Homeownership Builds Wealth Over Time<\/strong><\/h4>\n

Buying a home isn\u2019t just about having a place to live \u2013 it\u2019s a step toward building your future wealth.<\/p>\n

Why? Home prices typically rise over time<\/strong>, which means the longer you wait, the more expensive it is to buy. And even in some markets where home prices are softening today, the overall long-term trend speaks for itself (see <\/em>graph<\/em><\/a> below):<\/em><\/p>\n

\"a<\/a>And as home values rise, so does your equity when you\u2019re a homeowner. That\u2019s the difference between what your home is worth and what you owe. So, with every mortgage payment, that equity grows. Over time, that becomes part of your net worth.<\/p>\n

Today, the average homeowner\u2019s net worth is nearly 40X greater than that of a renter.<\/strong> That\u2019s a shocking difference, and the dollars in the visual<\/a> below don\u2019t lie (see graph below):<\/em><\/p>\n

\"a<\/a>And it\u2019s one of the big reasons why Forbes<\/em> says<\/a>:<\/p>\n

\u201cWhile renting might seem like [the] less stressful option . . . owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.\u201d<\/em><\/p><\/blockquote>\n

The Biggest Downside of Renting<\/strong><\/h4>\n

So, short-term, why does renting feel like a simpler choice? Lower monthly payments, less responsibility, no strings attached. But long-term? It can sting.<\/strong><\/p>\n

For decades, while home prices have been rising, rent has gone up<\/strong> too.<\/strong> And while rent<\/a> has held rather steady more recently, history shows the overall trend is up and to the right. That makes saving for a home more complicated than ever (see graph below):<\/em><\/p>\n

\"a<\/a>That kind of financial uncertainty has a real impact. In the same Bank of America<\/em> survey, 72% of potential buyers said they worry rising rent could affect their current and long-term finances.<\/strong><\/p>\n

Because rent doesn\u2019t build wealth. It doesn\u2019t come back to you later. It pays your landlord\u2019s mortgage \u2013 not yours<\/em>.<\/p>\n

So, whether you rent or own, you\u2019re paying a mortgage. The question is: whose mortgage do you want to pay?<\/strong><\/p>\n

Renting vs. Buying: What Really Matters<\/strong><\/h4>\n

Think of it this way. Renting means your money is gone once you pay it. Owning means your payment builds equity \u2013 like a savings account you can live in.<\/strong> Sure, buying<\/a> comes with responsibility. But it also comes with the kind of reward that grows over time. And that\u2019s why you need a solid plan to get there.<\/p>\n

As Joel Berner, Senior Economist at Realtor.com<\/em>, explains:<\/p>\n

\u201cHouseholds working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However,<\/em> <\/em><\/strong>they need to consider the equity and generational wealth they can build up by owning a home that they can\u2019t by renting it.<\/em> In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive<\/em><\/strong>.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/h3>\n

Renting may feel more do-able today. But over time, it could cost you more<\/strong> \u2013 without helping you build anything for your future.<\/p>\n

If homeownership feels out of reach today, you\u2019re not alone. And the first step toward getting out of the rental trap is to set a plan.<\/strong> Connect with an agent to set your specific goals and explore your options \u2013 so you\u2019re ready when the time is right.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"

You\u2019ve probably asked yourself lately: Is it even worth trying to buy a home right now? With high home prices and stubborn mortgage rates, renting can seem like the safer choice right now. Or maybe your only choice. That\u2019s a very real feeling. And perhaps buying today isn\u2019t your best move; it\u2019s not for everyone […]<\/p>\n","protected":false},"author":1,"featured_media":5745,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-5744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/sandpointrealtyidaho.com\/blog\/wp-content\/uploads\/2025\/05\/20250529-Blog-Header-Image-original.png?fit=750%2C410&ssl=1","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pdz2Zu-1uE","_links":{"self":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/5744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/comments?post=5744"}],"version-history":[{"count":0,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/5744\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media\/5745"}],"wp:attachment":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media?parent=5744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/categories?post=5744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/tags?post=5744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}