Buying vs. Renting in 2025: Which One Makes More Financial Sense?
Deciding whether to buy or rent isn’t just about today’s numbers—it’s about your future, your lifestyle, and your long-term goals.
According to ATTOM’s 2025 Rental Affordability Report, in most U.S. markets, buying a home actually takes up less of a person’s wages than renting a similar property. But does that mean buying is always the best choice? Not necessarily!
This guide will help you figure out what the data says, when buying makes sense, when renting is the smarter move, and what to consider before making your decision.
💡 What the Data Says
Each year, ATTOM analyzes home prices, rental costs, and wages across hundreds of U.S. counties to see which option is more affordable. Here’s what they found for 2025:
🔹 Buying is cheaper than renting a 3-bedroom home in nearly 60% of U.S. markets—monthly homeownership costs (mortgage, insurance, and property taxes) typically take up less of your income than renting.
🔹 Housing is still expensive—whether you rent or buy, housing costs take up 25-60% of the average worker’s wages, so affordability remains a challenge.
🔹 Upfront costs make homeownership tricky—even though buying is often cheaper in the long run, saving for a down payment and closing costs is still a hurdle for many.
🏡 When Buying a Home Makes Sense
Even as home prices rise, buying often costs less per month than renting. But is it the right move for you? Here’s when it makes sense:
✅ You Plan to Stay Put for a Few Years
Real estate is a long-term game. If you sell too soon, transaction costs could eat into your profits. Ideally, you’ll want to stay at least five years to build equity and offset upfront costs.
✅ You’re Financially Ready
Can you comfortably afford the down payment, closing costs, and still have emergency savings? If so, buying might be the better choice.
✅ You Want to Build Wealth Over Time
Renting gives you a place to live, but you’re not building equity. When you own a home, every mortgage payment increases your ownership stake, making it a financial asset for the future.
✅ You Need More Space
If you're currently in a one- or two-bedroom rental but need a larger home, buying might be the better move. According to ATTOM, renting a 3-bedroom home eats up more of the average worker’s wages than owning a similar-sized home in most markets.
🔹 But if a smaller space works for you, renting might still be cheaper! Smaller rentals often cost less than owning when you factor in maintenance, taxes, and insurance.
🏠 When Renting is the Smarter Choice
Even though buying often costs less monthly, renting still makes sense in certain situations.
✅ You Need Flexibility
Not sure where life is taking you next? If your job, relationships, or long-term plans are in flux, renting gives you the freedom to move without the stress of selling a home.
✅ You Don’t Have a Big Emergency Fund
Homeownership means unexpected expenses—repairs, maintenance, and property taxes can add up. If you don’t have 3-6 months of expenses saved, renting could be the safer option until you’re more financially secure.
✅ You Live in an Expensive Market
Some areas have sky-high home prices, making the upfront costs overwhelming. If buying would mean stretching your budget too thin, renting could be the smarter financial move.
✅ You Don’t Want the Hassle of Maintenance
Owning a home means handling repairs and upkeep yourself. If you’d rather call the landlord when something breaks, renting keeps things stress-free!
✨ Key Takeaways: Should You Buy or Rent?
💰 Buy if you want stability, are financially ready, and plan to stay put.
🚪 Rent if you need flexibility, aren’t ready for homeownership costs, or live in a high-cost market.
Still unsure what’s best for you? Let’s chat! I’d love to help you figure out the right move for your situation. Select a Date & Time - Calendly to set up a discovery call about your real estate goals! 😊