Thinking About Buying a Home? Read This First!

The decision to buy or rent isn’t just about today’s costs—it’s about your future plans, financial stability, and lifestyle goals. 

According to ATTOM’s 2025 Rental Affordability Report, homeownership costs less of a person’s wages in most U.S. markets than renting a comparable property. But does that mean buying is always the right choice? Not necessarily.

In this guide, we’ll break down what the data says, when buying makes sense, when renting is the better option, and what you should consider before moving.

Every year, ATTOM analyzes home prices, rental costs, and wages across hundreds of U.S. counties to determine which option—buying or renting—is more affordable. Its 2025 report found three key takeaways:

While home prices continue to rise, ATTOM’s data shows that monthly homeownership costs are still lower than a 3-bedroom rental in nearly 60% of the country. That’s because rent prices have also increased, making it harder for renters to save.

So when should you consider buying?

You Plan to Stay Put for a Few Years

Real estate is a long-term investment. If you sell too soon, you could lose money on transaction costs, even if your home’s value has increased. A five-year commitment gives you time to build equity and offset upfront costs like closing fees and moving expenses.

You Can Afford the Upfront Costs

One of the biggest hurdles to homeownership is the down payment and other upfront costs. Buying makes more sense if you can comfortably cover a down payment, closing costs, and emergency savings without stretching your budget too thin.

You Want to Build Wealth Over Time

Renting is like paying for a service—you get a place to live but don’t gain any ownership. When you buy a home, every mortgage payment increases your equity, which can serve as a financial asset in the future.

You’re Ready for More Space

Buying might be the best move if you’re currently renting a one- or two-bedroom apartment but need a three-bedroom home. According to ATTOM’s report, renting a three-bedroom home eats up more of the average worker’s wages than owning a comparable home in nearly 60% of the country.

However, renting could still be the cheaper option if you’re comfortable with a one- or two-bedroom rental. Smaller rental units typically cost less than the monthly expenses of owning a house, especially when you factor in maintenance, insurance, and property taxes.

Even though homeownership may be more affordable in the long run, renting still has advantages—especially if flexibility and financial security are top priorities.

You Need Flexibility

If you’re unsure about your job situation, relationship status, or long-term plans, renting allows you to move without the stress of selling a home.

You Don't Have a Large Emergency Fund

Homeownership comes with unexpected expenses—repairs, maintenance, and property taxes. If you don’t have three to six months’ worth of expenses saved, renting might be better until you have a financial cushion.

You Live in an Expensive Housing Market

Home prices are so high in some areas that buying requires a huge down payment and a large chunk of your monthly income. If mortgage payments, property taxes, and insurance would stretch your budget too thin, renting may be the safer option.

You Don't Want the Responsibility of Maintenance

Owning a home means handling repairs and ongoing maintenance, which can add up quickly. If you prefer to call a landlord when something breaks instead of dealing with repairs yourself, renting is the hassle-free option.

The best choice depends on your financial situation, lifestyle, and long-term goals:

Still unsure which option is best for you? Let’s chat about your goals and what makes the most sense for your situation! Click here to set up a discovery call about your real estate goals. 

Get in touch. National numbers are a great measuring stick to see how the overall economy and housing market are doing, but they don’t account for local home values and your personal financial situation.

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