Buying vs. Renting in 2025: What’s the Smarter Move?

Deciding whether to buy or rent isn’t just about today’s costs—it’s about your lifestyle, long-term goals, and financial comfort.

According to ATTOM’s 2025 Rental Affordability Report, in most U.S. markets, buying a home is actually cheaper than renting a comparable one. But does that mean it’s always the right choice? Not necessarily.

Let’s break it down so you can decide what makes the most sense for you.

What the Data Says

Every year, ATTOM crunches the numbers on home prices, rental costs, and wages across the country. Here’s what their 2025 report found:

• Buying is cheaper than renting a 3-bedroom in nearly 60% of U.S. markets. Homeownership costs (mortgage, insurance, property taxes) take up a smaller percentage of income compared to renting.

• Both renting and buying are expensive. Housing eats up anywhere from 25% to 60% of the average worker’s wages. Affordability is still a challenge.

• Down payments are a major hurdle. Even if buying is cheaper month-to-month, the upfront costs (down payment, closing costs) stop a lot of people from making the leap.

When Buying a Home Makes Sense

Yes, home prices are high, but so are rent prices. In many areas, buying still costs less on a monthly basis. So when should you seriously consider it?

✅ You Plan to Stay Put for a While
Buying is a long-term investment. If you sell too soon, you might not make up for closing costs and other expenses. A five-year commitment is ideal.

✅ You Can Afford the Upfront Costs
Even if your mortgage payment is lower than rent, buying comes with upfront costs—down payment, closing fees, moving expenses. If you can cover those without wiping out your savings, buying makes more sense.

✅ You Want to Build Wealth
Every mortgage payment increases your equity—meaning you own more of your home. Rent, on the other hand, just pays for a place to live. If you’re thinking long-term, homeownership builds financial security.

✅ You Need More Space
Looking at three-bedroom rentals? In nearly 60% of U.S. markets, owning a comparable home costs less than renting one. If you’re outgrowing your current place, buying might be the better move.

That said, if you’re fine in a smaller rental, you might save money by staying put—especially when factoring in maintenance and property taxes.

When Renting is the Smarter Choice

Even though homeownership has long-term perks, renting has its advantages too.

✅ You Need Flexibility
Not sure about your job, relationship, or long-term plans? Renting gives you the freedom to move without the stress of selling a home.

✅ You Don’t Have a Strong Emergency Fund
Owning a home means unexpected expenses—repairs, maintenance, property taxes. If you don’t have at least three to six months’ worth of savings, it might be better to rent until you’re in a stronger financial position.

✅ You Live in an Expensive Market
In some areas, home prices are so high that even with a mortgage, your monthly costs would be overwhelming. If buying would stretch your budget too thin, renting may be the better move.

✅ You Don’t Want to Deal with Maintenance
Owning a home means handling repairs, yard work, and general upkeep. If you’d rather just call a landlord when something breaks, renting is the hassle-free option.

So, Should You Buy or Rent?

There’s no one-size-fits-all answer. It all comes down to your financial situation, lifestyle, and future plans.

💡 Buy if you’re ready for stability, can afford the upfront costs, and plan to stay put.
💡 Rent if you need flexibility, aren’t financially ready for homeownership, or live in a high-cost area.

Still unsure which option is best for you? Let’s chat! https://calendly.com/shellyoneil

to schedule a quick discovery call, and we’ll figure out what makes the most sense for your situation.