Rent vs buy
The oldest housing question, answered with your numbers instead of a gut feeling.
Rent vs buy comparison
Renting is not throwing money away, and buying is not automatically building wealth. The honest answer comes down to your local prices, today's rates, and - more than anything - how long you plan to stay. This calculator compares the real monthly cost of each, then the notes below cover what a single month cannot show.
Why the monthly number isn't the whole story
The tool above compares rent against the full cost of owning - principal and interest, property tax, insurance and a maintenance reserve. But two things it cannot capture decide most rent-versus-buy questions: equity (part of an owner's payment pays down the loan, while rent builds nothing) and time (closing and selling costs are only worth it if you stay long enough to spread them out).
The break-even rule
Most buyers break even somewhere around four to six years. Below that, the upfront costs of buying and selling usually make renting the cheaper path; above it, equity and appreciation tend to tip the scale toward owning. If there is any chance you will move in the next couple of years, that uncertainty alone is a strong argument for renting.
If buying wins for you
Once the math and your timeline point to buying, the next steps are practical: confirm what you can borrow with the qualification calculator, pressure-test the real monthly cost on the true cost page, and check where rates are heading on the 2026 forecast.
Frequently asked questions
Is it cheaper to rent or buy in 2026?
It depends on your local prices, rents and interest rates. With higher rates, owning often costs more month-to-month than renting up front, but part of an owner's payment builds equity. The longer you stay, the more buying tends to pull ahead.
What is the break-even point for buying?
Commonly four to six years, because closing costs and selling costs are spread over your time in the home. Stay longer than the break-even and buying usually wins; sell sooner and renting often comes out ahead.
What costs does renting avoid?
Renters skip property tax, maintenance and repairs, homeowners insurance (beyond cheap renters insurance), closing costs, and the risk of falling home values. They also keep their down payment free to invest elsewhere.
Does buying always build wealth?
Not automatically. Equity builds slowly in the early years when most of the payment is interest, and home values can fall. Buying builds wealth best with a long time horizon, a stable income, and a price you can comfortably afford.
Should I buy if owning costs more per month?
Possibly - if you plan to stay many years, the equity you build and potential appreciation can outweigh the higher monthly cost. If you might move within a few years, renting and investing the difference is often the safer financial choice.