December Market Report

Renting vs. Buying in Today’s Market: What You Really Need to Know

As we close out the year, one question keeps coming up in conversations with clients, friends, and family:

Is it better to rent or buy right now?

On the surface, renting can feel like the easier choice. In many major markets, monthly rent is currently lower than the average mortgage payment. And with affordability still top of mind for many households, it’s understandable why renting feels like the safer option.

But when we zoom out and look at the full picture, the story becomes much more nuanced.

Let’s break it down.

Why Renting Feels More Affordable Right Now

Across many of the largest U.S. metro areas, renting is currently cheaper month-to-month than owning. Mortgage rates, insurance costs, property taxes, and maintenance expenses all factor into the cost of homeownership — and those costs have risen over the past few years.

That’s real. And it’s why many people are choosing to rent for now.

But monthly cost is only part of the equation.

The Long-Term Advantage of Homeownership

While renting may save money today, homeownership builds something renting never does: equity.

Over time, homeowners benefit from price appreciation and equity growth. According to recent data, buyers who stayed in their homes long enough saw their equity gains offset — and often exceed — the ongoing costs of ownership.

In simple terms:

• Rent payments are gone once they’re paid

• Mortgage payments help build long-term wealth

In many cases, rising home values actually reduce the true cost of owning over time.

This is why homeownership remains one of the most reliable ways Americans build wealth.

One of the Biggest Misunderstandings About Buying a Home

Here’s something that still surprises a lot of people:

Most buyers do not need 20% down to purchase a home.

That misconception alone keeps many renters on the sidelines. Today, there are loan programs that allow qualified buyers to purchase with far less upfront — and understanding your options can make a big difference.

Education matters, and this is where having the right guidance is key.

Why Today’s Buyers Have More Opportunity

While prices remain elevated in many areas, the market itself is becoming more balanced.

Here’s what we’re seeing nationally:

• Inventory is at its highest level since 2019

• Homes are spending more time on the market

• Price reductions and seller concessions are becoming more common

• New home builders are offering incentives at record levels

This means buyers have more choices — and more negotiating power — than they’ve had in years.

We’re seeing a shift away from the extreme seller’s market of the past few years and toward a more normalized environment.

Is It a Good Time to Buy?

National housing experts agree on one key point:

If you can afford it and plan to stay in your home, buying now can make sense.

Lower mortgage rates, increased inventory, and seller flexibility are creating opportunities — especially for prepared buyers who understand their finances and long-term goals.

That said, every market is local. Conditions vary by neighborhood, price point, and timing. That’s why working with a knowledgeable local advisor matters more than ever.

The Bottom Line

Renting may feel easier today — but buying is still one of the most powerful ways to build long-term stability and wealth.

Affordability is improving, inventory is growing, and buyers are gaining leverage. For those who have been waiting on the sidelines, the door to homeownership may be opening wider in the months ahead.

If you’re curious about what makes sense for your situation — whether that’s buying now, preparing for the future, or understanding your options — I’m always here as a resource.

Here’s to closing out the year informed, confident, and ready for what’s next.