Home Buyer Resources
Is Renting Truly Cheaper Than Buying a Home?
Owning a home is a dream for many people in our area. You have the opportunity to invest in a place of your own and build equity, not to mention carve out a space that reflects who you are and what you love.
However, worries about down payments, property taxes, maintenance, and insurance can make buying a home seem like wishful thinking — which is why many people choose to rent a home or apartment instead.
But is renting cheaper than buying a home? In the end, there are a lot more aspects to consider than just the upfront financial costs. Here are a few of the advantages and disadvantages of renting.
You Receive No Return When You Rent a Property
As a renter, you're paying hundreds of dollars a month to live in your community, and if you want to move, it's much easier. But renting a home doesn't offer you investment opportunities.
Unlike paying off your home loan and building equity, the money you pay when you rent goes straight to the property owner or manager.
You Don't Build Credit When You Rent
As this Forbes article explains, your credit score often does not factor in your on-time monthly rent payments, so renting a property isn't a great way to build credit. When you're paying mortgage, however, on-time payments can give you a nice boost.
Additionally, renting doesn't provide you with any tax benefits. If you own a home, you can deduct mortgage interest and property taxes, and exclude capital gains when you sell.
You Cannot Customize Your Living Space
Not all costs are financial. In some cases, the opportunity costs of renting a home greatly outweigh the benefits, especially when it comes to customization.
There may be rules and regulations in your rental community that prevent you from changing your space to fit your style, such as painting the walls, upgrading the kitchen, or making other improvements. These rules may also prevent you from other lifestyle choices, like owning a pet.
When you own your own home, you can create your own space (with your choice of countertops and kitchen cabinets), invest in home improvements, and live with your furry companion. Why not live in a place that allows you the independence and freedom to make your home your own?
You Have a Harder Time Connecting with Your Community
Forming deep connections with your neighbors is likely not high on your priority list if you're a renter, especially when you consider that you will only be living in the community for a short time. Living in a tight-knit community has tons of benefits, many of which you might miss out on by living in short-term housing. If you really want to get to know your neighbors and develop more lasting bonds, then homeownership is the way to go.
Renting vs. Buying: The Bottom Line
Renting gives you flexibility and little maintenance to worry about. Buying a home is a long-term investment that gives you a space you can customize, helps you build credit and equity, and connects you with your community.
We want to help you make the best decision, and we have important real estate market resources that you can use to help you decide if renting is cheaper for you than buying a home. Just contact us at and we can talk about your plans.