Rent vs. Buy Analysis
Go beyond the monthly payment. Compare the long-term wealth impact of buying a home versus renting and investing the difference.
Buying builds $120,450 more in net worth.
The True Cost of a Home
I genuinely believe that a home is first and foremost a place to live, but financially, it is a massive capital allocation. When you buy, you aren't just paying a mortgage—вы paying property taxes, insurance, and maintenance. Most importantly, you are locking up a down payment that could be earning interest elsewhere.
Opportunity Cost: If you put $90,000 down on a house, you lose the ability to invest that $90,000 in the stock market. Over 10 years at 8%, that money could have grown to nearly $200,000. Our calculator accounts for this "hidden cost" of buying.
What to Consider:
- Appreciation: Historically, US homes appreciate at ~3-4% per year. This is the primary driver of the "Buy" advantage.
- Forced Savings: Every mortgage payment includes principal, which is essentially moving money from your checking account to your home equity.
- Rent Hikes: Rents generally increase with inflation, while a fixed-rate mortgage payment stays the same for 30 years.