Housing Decision
Should You Rent or Buy?
Compare the true cost of renting versus buying over time. See which makes more financial sense for your situation.
What We Compare
Buying Costs
Mortgage P&I, property taxes, insurance, PMI, maintenance (1% of value/yr), and opportunity cost of down payment
Renting Costs
Monthly rent with annual increases, renter's insurance, and investment returns on money you'd spend on a down payment
Equity Building
Home appreciation vs. investment returns on saved down payment and monthly cost difference
Rules of Thumb
- Buy if staying 5+ years in the same area
- Price-to-rent ratio under 15 = buying favored
- Keep total housing costs under 28% of gross income
- Have 3-6 months expenses saved beyond down payment