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Is it better to rent or buy right now?
Buying comes out ahead by
$45,932
Net position after 5 years, buying vs. renting and investing the difference.
Home equity, year 5 (net)
$277,516
Rent + invest, year 5
$231,584
Cash to close, buying
$90,249
Interest paid, 5 years
$144,178
Under about three years of ownership, renting almost always wins. Selling costs alone can erase several years of appreciation.
The rent case assumes every dollar of the monthly difference gets invested, every month, for 5 years. Most people don't actually do that.
See every line
Buying
Closing cash$90,249
Principal paid$85,536
Interest paid$144,178
Carrying costs (5yr, grown 2%/yr)$31,224
Value, year 5$934,636
Balance owing, year 5$610,389
Selling costs (5%)$46,732
Renting
Rent paid (5yr, grown 3%/yr)$165,645
Upfront cash invested$90,249
Monthly difference invested$1,588/mo avg
Net worth, year 5$231,584
What this assumed
Amortization25 years
Appreciation4.50%/yr
Investment return6.00%/yr
Selling costs5% of sale price
Location
Last reviewed August 2026 · rates and rules from Sources & method
What this number means
This weighs five years of home equity — price growth minus what's still owed minus selling costs — against five years of rent plus investing everything you would have spent on a down payment. Appreciation and investment return move it most.