Renting vs Buying a Home: The 2026 Math
The answer depends on how long you plan to stay. Here is the break-even calculation.
The break-even point for buying vs renting is typically 5-7 years in most markets. If you plan to stay less than 5 years, renting is usually cheaper when you factor in closing costs (3-6% of home price), maintenance (1-2% annually), and the opportunity cost of the down payment. Beyond 7 years, owning almost always wins because you build equity while rent keeps increasing.
The Hidden Costs of Owning
Mortgage payment is just the beginning: add property taxes (0.5-2.5% of home value), homeowners insurance ($1,200-3,000/year), maintenance ($3,000-7,000/year for a $300,000 home), HOA fees ($200-500/month if applicable), and repairs (the $15,000 roof or $8,000 HVAC replacement that renters never face).