Is It Better to Rent Or Buy A House?

Blog posted On December 28, 2022

The weather isn’t the only thing cooling this season. Yesterday, the Case-Shiller home price index showed that home prices are continuing to fall. October marked the fourth consecutive month of cooling home prices. Meanwhile, rent prices are expected to continue climbing in 2023. When comparing the costs for renting and buying, which is right for you? Let’s explore some of the pros and cons for both.




  • Not paying interest
  • No closing costs, down payment etc.
  • Landlord is responsible for overall maintenance, not you
  • Good for short-term living arrangements
  • Not building equity
  • Paying off someone else’s mortgage
  • Rent costs are projected to continue rising
  • Have to wait for landlord to fix problems
  • Potential for payments to increase with every renewed lease
  • Still paying renter’s insurance
  • Can’t personalize – paint, renovate, etc.
  • Loss of security deposit for major damage or potentially for breaking lease early
  • Rent payments not tax deductible




  • Boosting net worth with every mortgage payment
  • Increases home equity and financial protection
  • Diversifies investment portfolio
  • Mortgage interest is tax-deductible
  • Freedom to renovate, customize, paint etc.
  • Can increase your home’s value with renovations
  • Consistent, predictable payments every year (with fixed-rate mortgages)
  • Home affordability increasing as prices dip
  • There are several programs to help lower upfront costs like down payments and closing costs
  • Once you “finish your lease” aka sell, you’ll get money back (unlike renting)
  • You can rent out your house to help build equity (depending on your mortgage program)
  • Longer-term responsibility
  • Higher upfront costs
  • Responsible for maintenance costs

There are clear benefits for both renting and owning and determining which is right for you will depend on your financial situation. If you would like a free consultation, let us know!



Source: CNBC,