The Monthly Cost Debate: Renting vs. Buying

In 2025, the gap between renting and buying has never felt more visible. According to recent market data, renting a home in many U.S. cities can cost about $900 less per month than purchasing a starter home. At first glance, that makes renting look like the obvious financial win.

But Mike DeHaut Jr. of michaeldehautjr.com challenges this surface-level comparison. “Rent may seem cheaper monthly, but it’s 100% interest,” he explains. “None of that money is building your future.”

Rent Payments Are Sunk Costs

Here’s the truth: every dollar you spend on rent is gone forever. You’re paying someone else’s mortgage, not your own. There are no tax benefits, no equity growth, and no long-term payoff.

Even more concerning? Rent prices rarely stay flat. Nationally, rents have continued to rise year-over-year, and many tenants find themselves paying hundreds more within just a couple of lease renewals.

Homeownership: A Longer-Term Win

Buying a home, on the other hand, may come with a higher monthly payment upfront—but it offers something renting never will: ownership. “When you buy, part of your payment goes toward building equity,” Mike says. “Over time, that can turn into serious wealth.”

There are also tax deductions, potential appreciation, and the emotional benefits of stability and control over your space. Unlike renting, owning gives you the power to plant roots and plan long term.

Today’s Rate Isn’t Forever

A common hesitation in 2025 is mortgage rates. Buyers worry about locking in a higher rate and being stuck. But as Mike explains on michaeldehautjr.com, “You can always refinance later when rates drop—but rent? That’s almost guaranteed to go up.”

In other words, buying gives you options down the road. Renting locks you into a cycle of rising costs with no equity in return.

Think 5 Years Ahead, Not Just 5 Months

Instead of focusing solely on today’s monthly costs, Mike encourages buyers to think about where they want to be in five years. “Will you have built equity, taken advantage of tax benefits, and owned a home that fits your life—or will you still be paying off someone else’s investment?”

Renting may win the short-term affordability game, but buying is often the better long-term strategy—especially for those who plan to stay put and want to build financial security.

Need Help Comparing Your Options?

If you’re unsure whether renting or buying makes more sense for your situation, Mike DeHaut Jr. can walk you through real-life numbers and possibilities. As he puts it, “If you can afford the monthly payment now, buying puts you on a wealth-building path that renting never will.”

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