Buy a home or keep renting? It’s a big decision, and while renting may seem like the easier option, homeownership offers long-term financial benefits. If buying a home feels out of reach, it’s worth exploring how it can help build equity and provide stability over time.
But here’s something to consider: A recent Bank of America report reveals that 70% of prospective buyers worry about the long-term downsides of renting, like missing out on equity and facing ever-increasing rents.
Buy a Home and Secure Your Financial Future
If you’re feeling the same uncertainty—questioning where renting might leave you in the future—know this: If the numbers align, buying a home can offer powerful long-term financial advantages.
Let’s explore why 2025 is a smart time to buy a home and how homeownership can set you up for long-term success.
Buy a Home Helps Build Wealth Over Time
When you buy a home, your monthly housing payments become an investment in your future. Data from the Census and the Department of Housing and Urban Development (HUD) show that home prices generally rise over time, helping homeowners build long-term wealth. (See graph below.)
Owning a home is more than just having a place to live—it’s a powerful way to grow your financial future. As you pay down your mortgage and your home’s value rises, your equity increases, directly boosting your net worth. This long-term financial advantage is why, according to the National Association of Realtors (NAR), 79% of buyers see homeownership as a smart investment.
The Cost of Renting Keeps Rising
While renting may seem like the more affordable choice upfront, it often becomes more expensive over time. Rent prices have historically increased year after year, making it harder to build financial stability. Census data confirms this trend, showing a steady rise in rental costs over the decades (see graph below).
This means if you decide to rent, you’ll likely face growing expenses each time you renew or sign a new lease – and that’ll happen without building any wealth in return. Plus, those rising costs may make it harder to save up to buy a home down the road.
Renting a home vs Buying a home: The Long-Term Impact
When you own a home, your payments are an investment in your future. Renting, on the other hand, means your money is gone for good — it helps your landlord build equity, not you.
Renting works for those not ready (or able) to buy today. But if you are able to make the numbers work, buying a home builds equity and sets you up for long-term financial success. So, even though renting may seem easier now, it can’t match the benefits of homeownership.
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