Still renting in 2025? You could be paying more in rent than you would toward building equity in a home.
As rent prices continue to rise across much of the U.S., many people are re-evaluating whether they should continue renting—or make the leap into homeownership. While every situation is different, 2025 is shaping up to be a year where buying may actually be more cost-effective than renting in many markets.
Understanding how the numbers stack up—and what’s financially possible—is a critical first step toward making the right decision for your future.
Monthly Rent vs. Mortgage Payments
In many regions, average rent for a one-bedroom apartment now rivals or exceeds the monthly payment on a starter home. With fixed mortgage payments, buyers gain predictability, while renters may face annual increases.
Building Equity vs. Paying a Landlord
Rent payments build zero equity. Mortgage payments help you build ownership in your home—an asset that can grow in value over time and serve as a long-term financial resource.
Tax Benefits of Homeownership
Mortgage interest and property taxes may be tax-deductible, giving buyers potential annual savings. Renters miss out on these deductions.
Down Payment Misconception
Many buyers think they need 20% down—but that’s not always true. FHA loans, VA loans, Conventional programs, and Down Payment Assistance programs can significantly reduce the amount you need to get started.
Long-Term Wealth Implications
Buying a home can create long-term wealth through appreciation, equity growth, and potential for rental income or resale. Renting, by contrast, is a short-term housing solution with no financial return.
Myth: You need perfect credit to qualify for a mortgage. Fact: Many loan programs accept lower credit scores. What matters more is your overall financial readiness—savings, income stability, and willingness to plan.
Not sure if buying makes sense for your situation? We’ll help you compare your rent to your potential mortgage—no pressure, just personalized guidance.
Sales Info to schedule your free rent-vs-buy consultation.
855-LOANWORKS (855.562.6769)
Sales@LoanWorks.ai
Disclosures: LoanWorks, Inc. is a mortgage broker licensed in multiple states. All information provided on this blog is for general informational purposes only and does not constitute an offer to lend or a commitment to approve any loan. Loan terms, rates, and eligibility are subject to change without notice and may vary based on creditworthiness, property type, and other factors. Not all applicants will qualify.LoanWorks, Inc. does not guarantee approval, rate, or term and does not make any express or implied claims about the availability of specific programs or products.
By refinancing an existing loan, total finance charges may be higher over the life of the loan. Always consult with a licensed LoanWorks representative for details specific to your financial situation.
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