Renting May Feel Cheaper. Until It Isn’t.

Would you rather pay $3,000/month for rent—knowing it will go up every year?
Or pay $4,000/month for a $600,000 home—knowing your payment is locked in for the next 30 years?

It sounds like a toss-up. But it isn’t.

Because this isn’t just a question of cash flow—
It’s a question of compounding.
And over 30 years, the results aren’t even close.

Let’s Break It Down: Rent vs. Own Over 30 Years

Scenario 1: Renting

• Starting rent: $3,000/month

• Annual increase: 5.5% (historical national average)

• Total rent paid over 30 years: $2,442,373

• Equity earned: $0

• Control over your housing cost: None

Scenario 2: Owning

• Purchase price: $600,000

• 20% down payment = $120,000

• $480,000 loan @ 6% interest (30-year fixed)

• Monthly mortgage: ~$2,878

• Add taxes, insurance, and maintenance: ~$4,000/month average

• Annual cost starts around $52,000 and rises modestly (2% inflation)

• Total cost over 30 years (with tax deductions factored in): ~$1,730,000

But here’s what makes the difference…

What You Gain as a Homeowner

• Locked housing cost while rent skyrockets

• Tax deductions on mortgage interest—averaging thousands/year early on

• Equity build-up from paying down principal

• Appreciation on the full $600,000 home—not just your down payment

Assuming just 3.8% appreciation (U.S. average):

• Home value after 30 years = ~$1,180,000

• Mortgage balance = $0

• Total equity = $1.18M

• Net gain (home value – total cost of ownership) = ~$500,000+

The Bottom Line

Renting

Total Out-of-Pocket $2.44M  

Net Equity $0 

Tax Deductions $0 

Control & Stability ❌ 

Buying

Total Out-of-Pocket - $1.73M

Net Equity - $1.18M

Tax Deductions ~$80K–$100K

Control & Stability ✅

Buying isn’t just a lifestyle choice.
It’s a wealth-building strategy.

But What About Market Risk?

Markets go up and down. But housing isn’t a short-term play.

Even factoring in periods like 2008, the long-term trend is clear:
→ Housing prices rise.
→ Rent always rises.
→ And inflation favors the owner—not the tenant.

Final Thought

Renting may feel safe.
But it quietly compounds against you.
Ownership builds in your favor—even when it doesn’t feel flashy.

This isn’t just about real estate.
It’s about knowing the difference between expense and investment.

If you’re ready to stop renting your future and start building it, let’s talk. I’ll run the numbers with you—no pressure, no push.

Just facts. Just strategy.
Because that’s what your next move deserves.