Is buying a home in 2025 still worth it? With mortgage rates hovering higher than recent years and home prices staying strong, it’s a valid question. Renting may feel like the safer — or even only — option right now.
But while renting may offer short-term affordability, it could cost you far more in the long run.
Why Renting Feels Like the Easier Option (But Might Not Be)
Renting gives you flexibility and fewer upfront responsibilities. You don’t have to worry about property taxes, maintenance, or sudden repairs. Plus, in some areas, monthly rent may even be cheaper than a mortgage payment right now.
But here’s the catch: renting doesn’t build equity. Your monthly payment disappears, helping your landlord build wealth — not you. And over time, rents rise while your wealth doesn’t.
According to a recent Bank of America study, 70% of future homebuyers worry that renting long-term will hurt their financial future. And they’re right to be concerned.
The Long-Term Wealth Advantage of Owning a Home
Homeownership is still one of the most reliable ways to build long-term wealth. Why? Because home values tend to rise over time. As they appreciate, so does your home equity — the portion of your home’s value that you truly own.
With every mortgage payment you make, you’re putting money toward your own future. That’s a big reason why the average homeowner’s net worth is nearly 40 times greater than the average renter’s.
Owning a home can be a long game — but it’s a smart one.
Renting Doesn’t Stay Affordable Forever
Even if your rent is manageable now, history shows that rent prices trend upward over time. That makes it harder to save for a home, especially when your income doesn’t increase at the same pace.
In the same Bank of America survey, 72% of aspiring homeowners said rising rent is a major financial concern — both now and in the future.
Who Are You Paying a Mortgage For?
Here’s the bottom line: whether you rent or buy, you’re paying a mortgage — the question is, whose mortgage are you paying?
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Renting = short-term flexibility but no long-term return.
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Owning = responsibility, but also equity, appreciation, and financial growth.
As Joel Berner, Senior Economist at Realtor.com, puts it:
“In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”
Start Planning Now — Even If You’re Not Ready Yet
You don’t have to buy a home tomorrow. But if homeownership is part of your future, the best thing you can do now is start planning.
Talk to a local real estate professional about your goals, your budget, and what’s realistic in today’s market. There may be more options — and more benefits — than you think.