Is Renting at $2,800/Month Really Cheaper Than Buying a Home?
It may feel easier to rent right now—but over time, renting can actually cost you more and leave you with nothing to show for it. A recent analysis from Keeping Current Matters explains it this way:
“Owning means your payment builds equity—like a savings account you can live in.”
“Renting may feel more doable today. But over time, it could cost you more—without helping you build anything for your future.”
Renting Costs Over Time
If you're currently paying $2,800 a month in rent, here’s what that looks like over five years:
$2,800 × 12 months × 5 years = $168,000
That’s nearly $170,000 spent—with zero return. No equity. No ownership. No control over your future housing costs.
*Figure 1. “Median U.S. Rent Prices” graph, from “Is It Better to Rent or Buy a Home?” by Keeping Current Matters, May 29 2025.
Buying: Building Equity, Gaining Value
Now let’s look at what it could mean to buy a home instead. Imagine you purchase a $450,000 home at a 5.5% interest rate—using one of the buydown promotions currently available. With an average annual appreciation of 4% and a five-year time horizon, here’s what the financial picture could look like:
You’d build roughly $52,000 in equity just by paying down the mortgage. At the same time, the value of your home could increase by about $97,000 due to market appreciation. Altogether, that’s around $149,000 in potential gain over five years.
And your monthly mortgage payment for principal and interest would be approximately $2,750—nearly the same as you’re paying in rent right now.
So instead of pouring money into rent and helping someone else pay off their mortgage, you'd be investing in your own future—and building real, lasting wealth.
*Figure 2. “Median U.S. Home Value” graph, from “Is It Better to Rent or Buy a Home?” by Keeping Current Matters, May 29 2025.
The Bottom Line?
Renting means spending $168,000 over five years with nothing to show for it.
Buying means paying roughly the same monthly amount—but gaining nearly $150,000 in equity and appreciation.
That’s the difference between losing money and investing it.
Why This Matters?
Why does this matter so much right now? Because rent prices tend to rise over time—typically 3–5% per year. That makes renting less predictable and more expensive as the years go on. In contrast, when you buy a home, your principal and interest payment stays the same. You gain stability and get on a path toward financial growth.
In fact, homeowners have nearly 40 times the net worth of renters, on average.
And as your equity grows or rates change, you have options: refinance, move up, or stay put with confidence. You’re in control—not a landlord.
*Figure 3. “Median U.S. Homeowner Networth” graph, from “Is It Better to Rent or Buy a Home?” by Keeping Current Matters, May 29 2025.
What Now?
Still not sure if buying is realistic for you right now? That’s okay. The first step is just understanding what’s possible.
Let’s meet one-on-one with a New Home Sales Counselor who can help you figure out what fits your timeline, your budget, and your goals.
You might be closer to owning than you think.
Chat with one of our New Home Sales Counselors and start building a plan that turns your monthly payment into long-term wealth. You might be closer than you think.
