The Real Benefits of Buying a Home This Year

The Real Benefits of Buying a Home This Year

Thinking about whether to keep renting or take the step into homeownership? It’s a big choice, and renting might seem like the simpler option—especially if buying a home feels out of reach.  

However, a recent Bank of America report reveals that 70% of prospective buyers worry about the long-term effects of renting, such as missing out on equity and facing rising rents.  

If you share these concerns but aren’t sure if buying is possible, the reality is that homeownership offers significant long-term financial advantages if the numbers align for you.  

Here’s why owning a home in 2025 and beyond could be a smart financial move.

Buying Builds Wealth Over Time

Owning a home transforms your monthly housing expenses into a long-term investment. Data from the Census and the Department of Housing and Urban Development (HUD) shows that home prices generally rise over time.

Increasing home values benefit homeowners by building equity. As you pay down your mortgage and your home's value rises, your ownership stake grows, boosting your net worth. This may be why 79% of buyers, according to the National Association of Realtors (NAR), see homeownership as a smart financial investment.

Renting Comes with Rising Costs

Renting might seem more affordable in the short term, especially with current home prices and mortgage rates. However, rent tends to rise over time. Census data shows a significant increase in rents over the years (see graph below).

Choosing to rent means you’ll likely face higher costs with each lease renewal, without building any wealth. These rising expenses could also make it harder to save for a home in the future.

Renting vs. Buying: The Long-Term Impact

Owning a home means your payments contribute to your future, building equity. Renting, however, only helps your landlord build wealth. While renting may be the option for those not ready to buy, homeownership offers long-term financial benefits that renting can't match. If you're able to make it work, buying a home sets you up for success.

Bottom Line

If you can afford it, make homeownership part of your financial plan. It's an investment you'll be glad you made.

Interested in exploring starter homes in our market? Let's connect today to discuss your options.