Housing Decision
Rent vs Buy
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The math behind rent vs buy
Most people assume buying is always better than renting. But the math depends heavily on how long you stay. Buying involves closing costs (2-3%) and selling costs (6%), which total 8-9% of your home's value. Stay 7+ years, and buying typically wins.
Breakeven point: In most markets, buying beats renting if you stay 4-6 years. Under 3 years, renting almost always wins.
When each choice makes sense
01
Buy if staying 7+ years
Transaction costs get diluted, equity builds.
02
Rent if staying under 3 years
Closing costs and realtor fees eat any gains.
03
Buy in slow-appreciation markets
You need even more time to break even.
04
Rent in expensive coastal cities
Renting + investing often wins indefinitely.
Related tools
Estimates only. Actual results vary by location. Consult a professional before making housing decisions.