Homeownership: The Long-Run Payoff You Don’t Want to Miss

Renting often seems cheaper and easier than buying — especially today. No surprise repairs, no tax bills, no stress over mortgage rates. You pay your rent and keep moving.

But here’s what gets overlooked: rent doesn’t build anything for your future. Every payment disappears the moment it’s sent, while homeowners grow their net worth simply by holding onto their property. So if you’re questioning whether buying is still worth it, the long-term numbers tell a much clearer story than most people realize.

Renting vs. Owning: What Your Money Actually Does

Here’s the real distinction: rent checks disappear the moment they’re paid. But when you own, a portion of every payment comes back to you as equity — the wealth you build as your home appreciates and your mortgage balance drops.

So even if renting feels cheaper today, there’s a major long-term tradeoff: you’re not building anything for your future. And that long-term gap is bigger than most people realize.

First American recently looked at the long-term financial outcomes of renting versus owning. They reviewed every major cost — mortgage payments, taxes, insurance, repairs, and maintenance — and compared them to the equity homeowners gain from rising home values and paying down their loans. They ran the analysis across multiple starting points to see whether the pattern held:

• 2006: the beginning of the housing bubble
• 2015: a full decade back
• 2019: just before the pandemic reshaped the market
• 2022: when mortgage rates spiked

And the results were the same every time: renters lost money in the long run, while homeowners steadily built wealth.

Take a look at the numbers. Each color reflects a different starting year, and the solid lines show how a homeowner’s net worth grows the longer they stay in their home. The dotted line shows the renter’s path — steady payments with no return. Over time, homeowners build equity, while renters continue putting money in without getting anything back.

The bottom line: owning a home builds wealth over time — renting doesn’t.

Homeowners consistently come out ahead, even after accounting for insurance, repairs, and property taxes. That held true across every time frame First American reviewed.

Renters, on the other hand, paid out month after month without gaining any long-term financial upside — no matter which period you compare.

Buying isn’t always the cheaper move in the short run, but the longer you own, the more dramatically the wealth gap widens.

Affordability Is Finally Starting To Turn a Corner

If you’re thinking, “Buying still feels tough right now,” you’re not wrong — the last few years have been rough for buyers. But the landscape is beginning to shift. Mortgage rates have inched down, price growth is cooling, and wages have been rising. Zillow even reports that typical monthly payments are a bit more manageable than they were this time last year — not a huge drop, but enough to matter.

Buying isn’t suddenly effortless. But it is more achievable than it was just a few months ago — and the long-term payoff remains hard to ignore.

Bottom Line

Bottom Line: Renting can seem cheaper in the moment, but ownership is what actually builds long-term wealth. And with affordability finally easing a bit, the door to buying may be wider than it looks. If you’re wondering what your next step could be, reach out to a local agent who can walk you through your options — no pressure, just clarity.

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