Why Homeownership Benefits Still Win — Even When Renting Seems Easier

When you rent, you’re covering someone else’s mortgage. Your money leaves your bank account and never comes back.

When you own, part of every payment turns into equity; the wealth you gain as your home increases in value and your loan balance goes down. These homeownership benefits add up over time.

So yes, renting may feel cheaper today. But over time, it costs you far more in missed opportunity.

First American recently compared renting vs. owning across several major time periods:

• 2006 (the housing bubble)

• 2015

• 2019 (pre-pandemic)

• 2022 (when rates spiked)

Across every one of those markets, two things were true:

✔ Renters lost money over time

✔ Homeowners gained it

Their data showed the same pattern again and again. Homeowners’ net worth rose the longer they owned, even after factoring in taxes, insurance, repairs, and maintenance. Renters, on the other hand, spent money month after month without building long-term financial benefit.

The conclusion?Time spent owning builds wealth. Time spent renting doesn’t.

And the gap grows the longer you stay put.

Affordability Is Slowly Improving

If you’re thinking, “But buying still feels out of reach,” you’re not alone. The last few years have been tough.

But the situation is shifting:

• Mortgage rates have eased

• Home price growth is calming

• Incomes have increased

• Zillow reports monthly payments are slightly more affordable than last year

No one is saying buying is suddenly easy but it’s becoming more possible than it was even a few months ago. And long term, owning continues to be one of the strongest ways to build wealth.

Bottom Line

Renting may feel simpler today, but homeownership is what builds real financial stability and long-term wealth.

If you want to explore what buying could look like for you (with clarity and zero pressure) call me, Teresa Hill. I’ll help you understand your options and prepare for the right next step.

*Information and Graphic sourced from First American, NAR, Realtor.com, & Keeping Current Matters