Why Buying a Home Still Pays Off in the Long Run

Renting can feel far less expensive and a whole lot simpler than buying a home, especially in today’s market. No repairs, no property taxes, no stressing about interest rates. You just pay your rent and get on with your day.

But here’s what doesn’t get talked about enough. Renting doesn’t help you build your financial future. Homeowners, on the other hand, grow their net worth just by owning a home.

So if you’ve been wondering whether buying is still worth it, the long term math may be clearer than you think.

Renting vs Owning How the Costs Really Compare

Here’s one of the biggest differences between renting and buying. When you rent, your payment goes straight to your landlord and that money is gone for good. When you own, part of your monthly payment comes back to you in the form of equity. That’s the wealth you build as home values rise and as you pay down your loan.

So while renting may look more affordable right now, it comes with a long term cost. You’re not building wealth. And that missed opportunity is bigger than most people realize.

First American recently looked at the long term financial impact of renting versus owning. They compared all the usual expenses like mortgage payments, taxes, insurance, maintenance, and repairs against the equity gained from appreciation and paying down the mortgage. Then they ran those numbers across different time frames:

2006 the start of the housing bubble
2015 ten years ago
2019 right before the pandemic
2022 when rates jumped

In every single scenario, two things were true. Renters lost money over time. Homeowners gained it.

Imagine a chart where each color represents one of those time frames. The solid lines show homeowner equity steadily rising. The dashed line the renter’s line keeps sinking as they pay more and more with nothing to show for it.

The takeaway is simple. Time spent owning a home builds wealth. Time spent renting doesn’t.

Even when you factor in the extra responsibilities that come with homeownership like taxes, insurance, and repairs homeowners still come out ahead in every time frame First American reviewed. Renters continued paying out without any long term financial return, no matter the year.

Now, this doesn’t mean buying always wins in the short term. But the longer you own, the bigger the wealth gap grows.

Affordability Is Starting To Improve

You might still be thinking “Buying just doesn’t feel possible for me right now.” And honestly, that’s understandable.

The last few years have been tough for buyers. But things are starting to shift. Rates have come down a bit this year, prices are softening in some areas, and incomes have been climbing. Zillow even reports that typical monthly payments have gotten a little easier compared to this time last year. Not a huge change, but enough to matter.

No one is saying buying is suddenly easy. But it is more doable than it was even a few months back. And in the long run, owning continues to be one of the strongest ways to build wealth.

Bottom Line
Renting may feel less expensive today, but owning is what helps you build real financial stability over time. And with affordability showing signs of improvement, the path to homeownership in New Hampshire may be more within reach than you think.

If you’re curious about what buying could look like for you, let’s talk. I’m here to help you explore your options with zero pressure.