Is It Better to Rent or Buy Right Now?

Tina Grandmaiter
Oct 2
2 min read

One of the biggest decisions many people face is whether to continue renting or take the leap into homeownership. In 2025’s market—with high mortgage rates, inflation concerns, and changing housing dynamics—the decision is more nuanced than ever. Below is a breakdown of pros, cons, and financial factors to help you decide. When you're ready for a more personalized comparison, reach out via our Contact Page.

The Rent vs Buy Equation: What to Compare

Here are key factors to consider:

Monthly payment comparison
Upfront costs (down payment, closing, moving)
Maintenance, taxes, insurance, HOA fees
Equity building & tax benefits
Flexibility and future plans
Market appreciation expectations

Pros of Buying in 2025

Building equity instead of paying rent
Potential tax benefits (mortgage interest, property tax deductions)
Stability of payment in fixed-rate mortgages (vs rent increases)
Freedom to customize or renovate your home
In many markets, low supply means owning may protect you from rising rents

Pros of Renting in 2025

Lower upfront costs and fewer maintenance responsibilities
More flexibility to move or relocate
Less risk if property values stagnate or decline
In some high-rate environments, renting for a few years while rates improve may be safer

Cost Comparison Example

Say you find a home priced at $300,000. If interest rates are ~7%, the monthly mortgage plus insurance, taxes, and maintenance might exceed a comparable rent — especially when you factor in the 2% to 5% closing costs and down payment. Mortgage-Info.com +3Zillow+3The Mortgage Reports+3

On the flip side, if rents in your area are rising 4–6% per year, renting longer may become more expensive than owning.

Zillow forecasts modest home value growth of ~2.6% in 2025 — meaning appreciation alone may not rapidly offset your cost of ownership. Zillow

When Buying Might Make More Sense

You plan to stay 5+ years — gives time to recoup closing/transaction costs
You have disciplined budget, cash reserves, reliable income
You prefer stability and want control over your space
You’re in a market where rents are escalating rapidly

When Renting Might Be Better

Your job or life is likely to change locations
You don’t have or prefer to avoid large down payments or repair risk
Mortgage rates and financing are unfavorable in your area
You’d rather invest your money elsewhere

How to Decide (Steps)

Run a detailed cost comparison (rent vs mortgage + expenses)
Project 5–10 year scenario — where will each cost you over time?
Factor in growth & appreciation — but conservatively
Consider lifestyle, flexibility, risk tolerance
Talk with a local expert — someone who understands your market

There is no one-size-fits-all answer. Whether renting or buying is better for you depends on costs, goals, and timing. If you’d like help running a side-by-side analysis for your area and financial situation, just reach out through our Contact Page. We’d be glad to help you make a confident decision.