Rent vs. Buy: Which Makes More Sense?

I feel like I’ve been having this conversation more often lately. You’ve probably heard the advice before:

“Don’t waste your money on renting when you can buy something that’s yours.”

That may resonate with a lot of people. Maybe you even got that advice yourself. I’ve heard it too, and in some ways, it makes sense. But before we nod along, let’s pause and consider the other side of the story - the real costs of owning a home, and the real benefits of renting.

My First-Home Reality Check

When I was 20, newly married, I stepped into homeownership with stars in my eyes. We were fortunate - thanks to my dad’s help - we built a small starter home and walked into it with equity right away. On paper, it looked like a smart financial move.

But here’s what happened: within five years, that equity was gone. We refinanced a couple of times just to keep up with all the other costs that came with owning a home. Things we hadn’t budgeted for - like a lawn mower, a deck, landscaping, window treatments, even a fence for the dogs - added up fast. Owning wasn’t just the mortgage. It was all the extras that made the house livable, and those extras drained us.

That experience taught me early that the “buying is always better” advice doesn’t capture the whole picture. And it also reminded me of one of the best lessons my dad ever shared - something I still tell clients today:

“If you can’t afford it, don’t buy it.”

Now, to be clear - this isn’t a blanket statement to rent everything under the sun. It doesn’t mean leasing a car that’s way out of your price range or furnishing a home with high-interest “rent-to-own” deals. What it does mean is being realistic about what you can comfortably afford without stretching yourself so thin that the purchase becomes a burden.

The True Cost of Owning a Home

Buying a house is often seen as a milestone of adulthood. But ownership comes with more than just a mortgage. According to a 2024 LendingTree study, the average homeowner in the U.S. spends $17,459 per year on non-mortgage costs—things like property taxes, insurance, utilities, and maintenance. That’s nearly $1,455 every month before even accounting for a loan payment.

And maintenance isn’t just a line item. It’s time, energy, and sometimes stress. Leaky roof? Broken furnace? A lawn that needs mowing every Saturday? Those responsibilities come with ownership.

Warren Buffett once said:

“Price is what you pay. Value is what you get.”

Owning can bring value, but it’s not always the cheaper or simpler option.

Why Renting Isn’t “Throwing Money Away”

Renting has its perks—especially in the right season of life.

• Flexibility: No 30-year mortgage tying you down. Younger people starting out might not know where they’ll want to be in five years. Renting gives you room to explore without the stress of selling.

• Predictable costs: Rent usually includes some or all utilities, and you’re not on the hook for surprise repairs. When the water heater bursts, it’s not your $3,000 problem.

• Freedom from upkeep: No lawns to mow, no gutters to clean, no replacing the roof.

• 
  

For retirees, renting can actually unlock more freedom. Imagine spending winters in Florida and summers in Ohio without juggling two mortgages, two property tax bills, and double the upkeep. Renting gives you that flexibility without the financial and logistical headache.

As financial writer Ramit Sethi says:

“Renting is not throwing money away. You pay for flexibility, mobility, and freedom. Those things are worth something.”

The Double-Home Dilemma

It’s tempting for retirees to buy a second home in a warmer state. But think about the costs:

• Two sets of property taxes.

• Two homeowners’ insurance policies.

• Two roofs, two air conditioning units, two everything that eventually needs repair.

  
  

My sister and her husband experienced this firsthand. They had a beautiful home in Michigan and then took advantage of an opportunity to buy his parents’ condo in Arizona. It seemed like the perfect setup - until the reality of double expenses set in. Within just a couple of years, they asked themselves, Why are we paying for two of everything when what we really want is to be in Arizona? They ended up selling the Michigan home and making the full move.

Their story is a reminder that sometimes the dream of owning multiple homes doesn’t match the day-to-day reality.

When Buying Still Makes Sense

Of course, buying a home does have benefits:

• Building equity over time.

• Stability and the ability to customize your space.

• Potential long-term appreciation if you plan to stay put.

  
  

But it’s not the best fit for everyone, at every stage. The key is to recognize where you are in life and what you value most: stability or flexibility.

Final Thoughts

The old advice to “always buy” is too one-size-fits-all. Renting isn’t a waste; it can be a smart choice - whether you’re 25 and figuring out your career, or 65 and splitting your time between two states.

And circling back to my dad’s timeless reminder:

“If you can’t afford it, don’t buy it.”

That doesn’t mean renting things you really can’t afford - like a luxury car or an overpriced house - just to “keep up.” What it does mean is being honest about what fits your budget, your lifestyle, and your goals without creating unnecessary stress. Sometimes that means buying. Sometimes that means renting. And sometimes it means waiting until the timing is right.

The bottom line? Think less about “rent vs. buy” as a universal rule and more about what gives you freedom, peace of mind, and alignment with your life right now.

Ready to Talk Through Your Options?

If you’re weighing the choice between renting and buying - or considering what role housing should play in your retirement plans - I’d be happy to walk through the numbers with you. Every situation is unique, and sometimes an outside perspective makes all the difference.

👉 Let’s have a conversation about how your housing decisions fit into your bigger financial picture.