Buyer Guide Spring Edition 2025

Renting Comes with Rising Costs

Renting may feel more affordable in the short term, especially right now with today’s home prices and mortgage rates. But the reality is, over time, rent almost always goes up. Take a look at the data and you can see that play out. According to Census data, rents have significantly increased over the decades ( see graph below ):

Increase in Rents Since 1988

Median Asking Rent, Vacant for Rent Units in U.S., Quarterly

$1,000 $1,100 $1,200 $1,300 $1,400 $1,500

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Source: Census

This means if you decide to rent, you’ll likely face growing expenses each time you renew or sign a new lease – and that’ll happen without building any wealth in return. Plus, those rising costs may make it harder to save up to buy a home down the road.

Renting vs. Buying: The Long-Term Impact

When you own a home, your payments are an investment in your future. Renting, on the other hand, means your money is gone for good — it helps your landlord build equity, not you. Renting is a good option for those not ready (or able) to buy today. But if you are able to buy at today's rates and prices, it helps you build equity and sets you up for long-term financial success. So, even though renting may seem easier now, it can’t match the benefits of homeownership.

Bottom Line If you can afford it, take control of your financial future by making homeownership part of your plan. It’s an investment you won’t regret.

10 10