The Monthly Cost Comparison

At first glance, renting may seem like the more affordable option in 2025. In many U.S. cities, the average monthly rent is nearly $900 less than the monthly payment on a starter home. That sticker shock alone can make renting look like the clear winner.

But as Erein Trawick explains on (https://mypineapplemortgage.com/home), focusing solely on monthly costs misses the bigger picture. "Rent may be cheaper upfront," he says, "but every dollar goes to your landlord. There's no return, no equity, and no long-term benefit."

Why Rent Is 100% Interest

When you rent, you’re essentially paying 100% interest. None of that money comes back to you. Over five years, $2,000 in rent per month adds up to $120,000—gone forever. You don’t own anything. You don’t build equity. And you don’t get the tax benefits homeowners can access.

On the other hand, buying a home—even with higher monthly costs—means you’re building ownership. Part of your payment goes toward your loan principal. Over time, that builds home equity, which becomes part of your net worth.

The Future of Rent vs. Mortgages

Here’s the key consideration: today’s mortgage rate doesn’t have to be your forever rate. If you buy now and rates drop in the future, you can refinance to lower your monthly payment. But rent? It typically increases year after year.

According to Erein Trawick, this is the conversation he has daily with buyers: “If you can afford the monthly payment now, buying puts you on a wealth-building path that renting never will. It’s about long-term strategy, not short-term savings.”

Where Will You Be in 5 Years?

Let’s say you keep renting for five more years. You might save some money month to month, but at the end of that time, you still don’t own anything. Meanwhile, homeowners have gained equity, potential appreciation, and tax advantages.

Even modest home price growth and loan paydown can add tens of thousands of dollars to your net worth in just a few years. That’s the long-term benefit renters miss.

Run the Real Numbers

Every situation is different, and there’s no one-size-fits-all answer. But as Erein Trawick emphasizes on (https://mypineapplemortgage.com/home), it’s worth comparing more than just the monthly payment.

“I always encourage people to look five years ahead,” he says. “Where do you want to be financially? If you’re ready to explore what buying could look like for you, I can help you run the real numbers.”

Bottom Line

In 2025, renting might feel safer or cheaper—but long-term, buying a home could be your smartest financial move. If you’re stable in your job, have manageable debt, and can afford a monthly payment, buying now may set you up for lasting financial growth.

Sources: Realtor.com, Forbes.com, NAR.realtor, CNBC.com