Should You Keep Renting or Buy a Home in 2025?

If you’re torn between renting and buying a home in 2025, you’re not alone. The monthly cost of owning a home can seem intimidating—especially when compared to rent. In many U.S. cities today, renting a two-bedroom apartment is roughly $900 less per month than purchasing a starter home.

But as David Norris of the Norris Mortgage Team explains, there’s a deeper story behind those numbers.

Rent May Be Cheaper—But It’s 100% Interest

Renting might feel more affordable month-to-month, but it comes with a major drawback: none of that money is building anything for your future.

“Every dollar you spend on rent is gone forever,” says David Norris. “You’re not building equity, there are no tax benefits, and your payment will likely go up year after year.”

In contrast, buying a home—even with a higher monthly cost—starts you on the path to long-term wealth. Your mortgage payment goes toward owning an asset. And with fixed-rate loans, your principal and interest stay the same over time, giving you stability that rent rarely offers.

Today’s Rate Isn’t Your Forever Rate

It’s true—mortgage rates have made headlines lately. But locking in a rate today doesn’t mean you’re stuck with it forever. In fact, many homeowners plan to refinance when rates eventually come down.

“Buying now gives you the chance to start building equity and take advantage of refinancing later,” says David Norris. “Waiting for the ‘perfect rate’ could mean missing out on years of home appreciation and tax benefits.”

Meanwhile, rents have continued to rise year over year, and there’s little sign that trend will reverse.

The 5-Year View: Renting vs. Owning

When comparing rent vs. buy, most people focus only on monthly payments. But the real difference shows up over time.

Here’s what buying offers that renting doesn’t:

• Equity growth: Every payment helps you own more of your home.

• Price stability: Lock in your payment for 30 years, while rents rise.

• Tax advantages: Mortgage interest and property taxes may be deductible.

• Appreciation: Your home could increase in value, building wealth over time.

“If you’re financially ready to buy and can afford the monthly payment, it’s worth exploring your options,” says David Norris on NorrisMortgageTeam.com. “Homeownership is one of the most powerful tools for building generational wealth.”

Run the Numbers for Yourself

Everyone’s financial situation is different. That’s why it’s smart to run personalized numbers and weigh your long-term goals.

Instead of asking, “Which is cheaper this month?” ask, “Where will I be in five years if I rent vs. buy?”

According to David Norris, that’s the conversation more buyers need to have in 2025. “Homeownership isn’t just a purchase—it’s a strategy. And we’re here to help you figure out if it makes sense for your life right now.”

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