Renting can feel simpler and more affordable in the moment. No repairs, no property taxes, no worrying about mortgage rates — just pay your monthly bill and move on with life.
But here’s what often gets overlooked: renting doesn’t build your financial future.
Homeownership does.
As the #1 real estate agent in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake, I see firsthand how owning a home grows wealth over time — even when the market feels tough.
Renting vs. Owning: The Long-Term Math
When you rent, the money you spend is gone for good. You help your landlord build wealth, not yourself.
When you own a home, part of every monthly payment goes back into your pocket in the form of equity — the financial value you gain as you pay down your mortgage and your home appreciates.
Even when renting feels cheaper today, it comes with a long-term cost: you’re missing out on wealth-building.
First American analyzed renting vs. owning across several major financial periods:
-
2006: the height of the housing bubble
-
2015: 10 years ago
-
2019: right before the pandemic
-
2022: when rates spiked
Across every single time period, the results were the same:
-
Renters lost money over time
-
Homeowners built wealth
Their data shows homeowners’ net worth consistently rising the longer they stayed in their home. Renters, meanwhile, continued spending without gaining anything financially.
The message is clear:
Time spent owning builds wealth. Time spent renting doesn’t.
Even With Taxes and Repairs, Owners Still Come Out Ahead
The analysis considered everything — mortgage payments, taxes, insurance, maintenance, repairs — and homeownership still won every time.
Why? Because appreciation and paying down a mortgage compound over time. Renting simply doesn’t offer that benefit.
This doesn’t mean buying always beats renting in the short term. But the longer you own, the wider the wealth gap becomes.
The Good News: Affordability Is Improving
If buying still feels out of reach, you’re not alone. The past few years have been challenging for buyers. But things are shifting:
-
Mortgage rates have come down from their peak
-
Home prices are softening in many areas
-
Incomes are rising
-
Monthly payments are slightly easier than this time last year (Zillow)
Buying isn’t suddenly “easy,” but it is becoming more achievable than it was even a few months ago.
Bottom Line
Renting may feel simpler today, but homeownership is what builds long-term wealth — and history proves it again and again.
If you’re curious what buying could look like for you in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, or Bonney Lake, I’m here to help you explore your options with zero pressure.
