KeyGroup – Nicole Ward, REAL Broker

Buying versus Renting

Home Buying vs. Renting

Buying a home is a huge part of the American Dream. Choosing to buy or rent, though, is a major decision that affects your finances, lifestyle and future opportunities.

The decision to buy or rent depends on many factors like location, job stability and family needs. With so many factors to consider, it can be difficult to make a decision.



  • May build equity that could be accessible through home equity products
  • No landlord to answer to
  • More stability (especially with schools)
  • Possible tax benefits
  • Can improve or upgrade home to your taste


  • Requires substantial money, paperwork upfront
  • Could lose money if home values decline
  • Extra expenses beyond mortgage payments
  • Rising home prices and low inventory in many markets
  • Responsible for repairs, remodeling



  • Fewer upfront costs and paperwork
  • Freedom to be more mobile
  • Not responsible for maintenance, repairs
  • No need to worry about falling home values
  • Builds credit (if your landlord reports rent payments to the credit bureaus)
  • No property tax bills


  • Landlord could raise rent
  • Might have to relocate on short notice if the landlord decides to sell the property
  • Builds equity for the landlord
  • Limited vacancies in competitive rental markets
  • No tax benefits
  • Less freedom in design choices (paint colors, appliances)

So which is better?

One of the most common questions people ask is whether they should rent or buy a home. The answer to this question is not straightforward because it depends on many factors. For example, if you are looking for a short-term solution, renting may be a better option as it’s cheaper than buying and you don’t need to worry about maintenance costs. However, if you are looking for a long-term solution, buying may be the best option as you can build equity in your property over time and enjoy tax benefits.

Bottom line

Ultimately, deciding between renting and buying a home is a personal choice. If you haven’t determined which is best, it may be helpful to speak with a real estate agent who can help you weigh your options and make an informed decision.

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