Rent vs Buy: Making the Right Move in 2026
Should you keep renting or buy your first home? This guide explores the financial and lifestyle factors you should consider.
Buying a Home
- ✓ Build equity over time instead of paying a landlord.
- ✓ Full control over your living space and renovations.
- ✗ Higher initial costs (down payment, closing costs).
Renting
- ✓ Lower monthly maintenance costs and mobility.
- ✓ Freedom to invest down payment capital elsewhere.
- ✗ Monthly payments do not contribute to ownership.
The "5% Rule"
A common rule of thumb is the 5% rule. If the unrecoverable costs of homeownership (property tax, maintenance, and capital cost) are higher than the cost of renting a similar property, renting may be the better financial choice.