The Cost Comparison in 2025

If you're wondering whether to keep renting or finally buy a home in 2025, you're not alone. It’s one of the biggest financial decisions many Americans face—and on the surface, renting still seems cheaper.

In many U.S. cities today, renting costs about $900 less per month than buying a typical starter home. That’s a big difference, especially when budgets are tight and interest rates remain higher than what we saw just a few years ago.

But as Zack Jones explains on zackjonesmortgage.com, the monthly payment isn't the full story.

Why Rent Feels Cheaper (But Isn’t Long-Term)

Yes, renting may have a lower sticker price today. But that rent payment is 100% interest. Every dollar you spend goes to your landlord, with no equity, no tax benefits, and no long-term return.

"I tell my clients this all the time," says Zack Jones. "Renting might look easier now, but it keeps you on the sidelines financially. Buying, on the other hand, is an investment in your future."

When you buy a home, you're paying into something you own. Over time, your equity grows, even if home values fluctuate. And unlike rent, your mortgage payment can eventually stay the same or even decrease if you refinance.

Understanding Today’s Mortgage Rates

One of the biggest concerns buyers have right now is interest rates. They’re higher than they were during the pandemic, and that makes monthly payments feel steep.

But here’s the key: today’s mortgage rate doesn’t have to be your forever rate.

"You can always refinance when rates come down," Zack Jones explains. "But rent? It’s almost guaranteed to go up every year."

So while you may pay more upfront when you buy, that cost is building something. With rent, there's no return on your investment.

Where Will You Be in 5 Years?

Ultimately, deciding between renting and buying isn’t just about next month’s payment—it’s about your long-term goals.

Buying gives you stability. It locks in your housing costs. It gives you potential tax advantages and the ability to build wealth through appreciation and equity.

"If you can afford the monthly payment now, even if it's a little higher than rent, you're putting yourself on a path that renting can't match," says Zack Jones.

Plus, homeowners have a net worth that’s nearly 40 times higher than renters, according to data from the Federal Reserve.

Is Buying Right for You?

Everyone’s situation is different. Your income, credit score, savings, and local market all play a role.

But if you’re on the fence, the best next step is to run the numbers. Zack Jones can help you compare renting vs. buying in your exact situation—including what kind of home you could qualify for.

"It doesn’t hurt to explore your options," he says. "And for many, it turns out that buying is more possible than they think."

Sources: Realtor.com, Forbes.com, Census.gov, NAR.realtor