The five-year test
Transaction costs to buy and later sell a home run 8-10% of its value. Appreciation and principal paydown need time to overcome that. If you are confident you will stay five years or more, buying usually wins. Under three years, renting usually wins. In between, the details decide.
Compare total cost, not payment vs. rent
The honest comparison is rent versus the full cost of owning: mortgage interest (not principal - that is savings), taxes, insurance, maintenance, and HOA, minus tax benefits and expected appreciation. Our Rent vs Buy calculator runs exactly this math with your numbers.
What renting buys you
Mobility for career moves, zero maintenance risk, and no exposure to a local downturn. If your industry moves people every two years, renting is often the financially sophisticated choice, not the fallback.
What owning buys you
A fixed principal-and-interest payment that never rises while rents do, forced savings through principal paydown, leveraged appreciation, and control of your own walls. Five years of typical appreciation plus paydown commonly builds six figures of equity in our markets.