Your Situation
Hidden Costs Most People Forget
Buying: Closing costs (2-5%), property tax (1-2%/year), maintenance (1-3%/year), HOA fees, insurance, and the opportunity cost of your down payment sitting in a house instead of invested.
Renting: Rent increases (2-4%/year), no equity, and the psychological cost of not "owning" anything. But you also get flexibility, no repair bills, and the ability to invest your down payment elsewhere.
The break-even point is usually 5-7 years. If you plan to move sooner, renting often wins. If you'll stay 10+ years, buying usually wins β especially with appreciation.
FAQ
How long should I plan to stay for buying to make sense? +
Generally 5-7 years. Closing costs eat up your first few years of equity. If you sell before breaking even, you lose money compared to renting.
What about the tax deduction for mortgage interest? +
Since the 2017 tax reform, the standard deduction is so high ($29,200 for married couples in 2026) that most homeowners don't itemize. The mortgage interest deduction helps high earners with expensive houses, not the average buyer.