Is It Worth Trying To Buy a Home Right Now? Let’s Talk About the Long-Term Picture
With mortgage rates higher than we’ve seen in recent years and home prices still elevated in many markets, it’s natural to wonder: Is now really the time to buy a home?
For a lot of people, renting feels like the safer, simpler, and more affordable choice. After all, renting typically requires less upfront money, less maintenance responsibility, and more flexibility. And in some markets, renting might even be cheaper month to month than a mortgage payment.
But here’s what you need to know: while renting might feel easier in the short term, it can actually cost you much more over time. That’s why it’s worth taking a deeper look at what renting really means for your financial future.
Renting Might Feel Safer, But It Offers No Long-Term Financial Return
Recent data from Bank of America reveals that 70% of future homebuyers are worried about the long-term consequences of renting. And it’s a valid concern.
When you rent, your monthly payments go toward your landlord’s investment — not your own. There’s no equity, no appreciation, no ownership. That means at the end of each year (or lease), you’ve spent thousands of dollars without gaining any lasting value.
By contrast, homeownership gives you the ability to build wealth over time. With each mortgage payment, you’re paying down your loan and growing your equity — and if home prices rise, that equity increases even faster.
Why Equity Matters
Equity is the portion of your home that you truly own — the difference between what your home is worth and what you owe on it. It’s a financial asset that grows over time and can later be tapped into or leveraged for other goals, like funding a renovation, sending a child to college, or building a retirement nest egg.
This is one of the key reasons why, according to the Federal Reserve, the average homeowner’s net worth is nearly 40 times greater than that of a renter.
That’s not a small gap. It’s the kind of wealth difference that can shape your entire financial future.
The Cost of Waiting
You might be thinking, I’ll just wait until it gets cheaper to buy. But history suggests otherwise. Home prices have trended upward for decades. While they may flatten or dip temporarily in some areas, the long-term direction has always been growth.
Even modest price increases over the next five years could significantly impact how much you end up paying for the same home if you wait.
Let’s say you’re eyeing a $350,000 home today. If home prices appreciate even 4% per year — a conservative estimate — that same house could cost over $425,000 five years from now. Add in the possibility of higher closing costs or ongoing rent increases, and the total cost of waiting becomes much more than just theoretical.
Renting Has Risks, Too
While homeownership comes with responsibilities — maintenance, taxes, insurance, and more — renting has its own set of risks.
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Rent Inflation: Over time, rents tend to rise. You may have noticed your rent climbing with each renewal. Unlike a fixed-rate mortgage, there’s no long-term payment stability in renting.
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No Control Over Housing: Landlords can sell, renovate, or raise rent, forcing you to move or pay more than you planned.
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No Return on Investment: Every dollar spent on rent is gone. There’s no possibility of recouping that money or turning it into a financial asset.
In contrast, homeowners benefit from payment predictability (if they have a fixed-rate mortgage) and the potential for home appreciation over time.
Building a Strategy for Homeownership
None of this means you should rush into buying a home. In fact, you should only buy when you’re financially ready and confident it’s the right decision for your lifestyle. That includes:
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Having enough saved for a down payment and closing costs
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A steady and sufficient income
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Good credit for favorable loan terms
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Confidence in your job or location stability
But even if you’re not ready today, the best time to start planning is now. The earlier you start working with a trusted real estate professional and lender, the more informed and prepared you’ll be when the time comes to make your move.
As Joel Berner, Senior Economist at Realtor.com, puts it:
“In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”
Make Your Money Work for You
It’s not just about housing. It’s about financial growth.
Think of buying a home as an investment in yourself and your future. Over time, it can become the foundation of your net worth, a hedge against inflation, and a legacy you can pass down.
And while the upfront cost of homeownership may seem steep, so is the long-term cost of renting. With every month that passes, your rent payments go toward someone else’s equity — not yours.
Bottom Line
Renting can make sense for many people in the short term. It offers flexibility and may cost less upfront. But if you’re serious about building wealth and creating stability, owning a home is one of the most powerful tools available.
Even if it feels out of reach today, the first step is making a plan. Talk with a real estate professional who can help you explore your options, set goals, and understand what steps to take to move from renter to owner — when the time is right for you.
Because the cost of waiting might be more than you think.