Renting vs Buying a Home

Property taxes, homeowners insurance, HOA dues, and maintenance — budget roughly 1–2% of the home's value per year for upkeep.

Transaction costs on both ends: 2–5% of the loan to buy, and commonly 6–8% of the sale price to sell.

Those transaction costs are why short stays favor renting. You usually need several years of appreciation and principal paydown just to break even.

Divide the home's purchase price by the annual rent for a comparable property. Under 15 generally favors buying; over 21 generally favors renting; in between it's close and depends on your specifics.

In expensive coastal markets this ratio often exceeds 25, which is why renting can be rational there even for high earners.

A fixed-rate mortgage freezes your largest housing cost while rents keep rising. Over 10–15 years that gap compounds significantly.

Forced savings through principal paydown, plus potential tax deductibility of mortgage interest if you itemize.

Control and stability — no lease renewals, no landlord decisions. That's worth real money to many households even when the spreadsheet is neutral.

If you're leaning toward buying, see what you may qualify for in about 60 seconds with no hard credit pull.