You may be wondering lately: Is buying a home even worth it right now?

With elevated home prices and persistent mortgage rates, renting can feel like the more manageable or even the only feasible option. That’s a completely understandable perspective. And truthfully, buying a home isn't the best step for everyone at this moment. You should only move forward with homeownership when you’re financially prepared and the timing fits your goals.

But here’s something important to keep in mind about renting.

Though it may feel like the safer or more affordable route today, especially in certain markets, renting can actually cost you more in the long run.

A recent Bank of America survey revealed that 70% of future homeowners are concerned about how long-term renting could impact their financial stability. And their concern is valid.

Even if homeownership seems a bit out of reach right now, starting a plan today and working steadily toward your goal can set you up for major financial benefits down the road.

Homeownership Builds Wealth Over Time

Buying a home isn’t just about having a place to call your own — it’s about making a smart investment in your future.

Why is that? Because home values tend to increase over time. That means the longer you wait, the more costly it could become to purchase a home. Even in areas where prices are currently leveling out, the long-term trend continues to show appreciation in home values (see graph below):

As your home’s value rises, so does your equity — the difference between its market value and what you owe on your mortgage. With each payment you make, your equity grows, effectively turning your home into a powerful wealth-building tool.

Today, the average homeowner’s net worth is almost 40 times greater than that of a renter. That’s a staggering difference — and the numbers speak for themselves (see graph below):

This is part of the reason why Forbes notes:

“While renting might seem like [the] less stressful option . . . owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.”

The Hidden Costs of Renting

In the short term, renting may feel like a more straightforward choice — often lower monthly payments, fewer responsibilities, and more flexibility. But over time, it can really add up.

Historically, both home prices and rents have risen steadily. While rent increases may have slowed in the short term, the long-term trend shows consistent growth, making it harder to save for a future home (see graph below):

This kind of financial uncertainty weighs heavily on renters. The same Bank of America survey found that 72% of aspiring buyers are worried that rising rent could negatively affect both their current and future financial situations.

Unlike homeownership, rent payments don’t contribute to your wealth. They don’t build equity or offer a return. Instead, you’re helping pay off your landlord’s investment — not your own.

So whether you’re renting or owning, you’re still paying a mortgage. The question is: whose investment are you building?

Renting vs. Buying: What to Consider

Here’s a helpful way to look at it: Renting means your money is gone once it’s spent. Buying puts your money into something that grows in value — like a living, breathing savings account. Yes, owning a home comes with responsibility, but it also brings long-term rewards that can truly transform your financial future.

Joel Berner, Senior Economist at Realtor.com, puts it this way:

“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it. In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”

Bottom Line

Renting might feel like the most doable option right now — and for many, it is. But over time, it could end up costing you more without helping you build toward the future you want.

If buying a home feels like a stretch today, you’re not alone. The key is to begin planning now. Set clear, achievable goals, and partner with a knowledgeable real estate agent who can guide you through the process when the time is right.

For personalized guidance and help developing your path to homeownership, reach out to Mike Panza and the team at Panza Home Group. They’re here to support you every step of the way. Learn more about how to contact them here: https://panzarealestate.com/team/mike-panza