Still Renting in 2025? You’re Not Alone… But Should You Be?
If you’re renting right now, you’re probably familiar with a few 2025 realities: rising rent, glitchy appliances, and a landlord who raises prices faster than your streaming service subscriptions. Meanwhile, your friends keep talking about “building equity” and locking in mortgage rates like they’ve cracked the adulting code.
So, is buying a home in 2025 the smarter move? Or is renting still the better bet in this market?
We partnered with real estate agents and loan officers (like the one who shared this article) to break it down for you—no fluff, just facts, examples, and a bit of humor. Because let’s face it, housing decisions are stressful enough without the financial jargon.
The 2025 Housing Snapshot
Before we dive into the pros and cons, let’s look at the current climate:
- Average rent in the U.S. is up 4.2% year-over-year, with many metro areas seeing increases closer to 8–10%.
- Mortgage rates are hovering between 6.4% and 6.7% for 30-year fixed loans.
- Home prices are stabilizing in many areas, with some softening in overbuilt markets and modest appreciation elsewhere.
Translation: It’s not 2021 (you won’t find 3% rates), but it’s also not 2008. The housing market is relatively healthy, and opportunities exist for those ready to buy.
Renting: Pros, Cons, and 2025 Reality Checks
Pros of Renting
- Flexibility. Want to move in 6 months? No problem.
- Fewer responsibilities. The landlord handles that leaking sink (ideally).
- Lower upfront costs. Security deposit ≠ down payment.
Cons of Renting
- No equity. Your monthly payment builds your landlord’s wealth, not yours.
- Rising rents. Most tenants in 2025 are paying more than they did last year—often without any major improvements.
- No customization. Want to paint your walls or replace that 1980s ceiling fan? Good luck.
2025 Update: In many areas, the cost of renting is now equal to—or higher than—a mortgage payment. Especially when you factor in things like rent inflation and lack of tax benefits.
Buying: Is Now the Right Time?
Pros of Buying in 2025
- Equity Growth. Every payment moves you closer to full ownership.
- Stable Payments. With a fixed-rate mortgage, your principal and interest stay the same.
- Tax Benefits. Mortgage interest and property tax deductions may help offset your costs.
- Homeownership Perks. Want a dog? A vegetable garden? A funky wallpaper mural? Go for it.
Cons of Buying
- Upfront Costs. Down payment, closing costs, inspections—it adds up.
- Responsibility. You’re the landlord now, for better or worse.
- Market Risk. While 2025 is stable, no one can guarantee short-term appreciation.
2025 Insight: Thanks to expanded loan programs (including 3% down options and state-funded assistance), buying isn’t as far out of reach as many renters think. And with builder incentives and seller credits back in play, buyers are negotiating better deals again.
A Quick Math Example
Let’s say you’re paying $2,200/month in rent.
Over the next 3 years, assuming a modest 5% rent increase annually:
- You’ll pay over $85,000 in rent.
- You’ll build $0 in equity.
- Your landlord might send you a thank-you card. (Unlikely.)
Now compare that to buying a $350,000 home with 5% down:
- Your mortgage payment (with taxes/insurance) could be similar—maybe slightly more or less, depending on rates and area.
- Over 3 years, you could build $20,000–$30,000 in equity, even with modest appreciation.
- You’ll gain tax deductions and payment stability—and control.
Who Should Still Rent in 2025?
Let’s be fair: renting isn’t the villain. It makes sense if:
- You plan to move in less than 2 years.
- Your job is unpredictable or relocating.
- You’re still rebuilding credit or saving for a down payment.
- You’re allergic to yard work and responsibility.
But if you’re planning to stick around? Buying might not just be smarter—it might save you a lot of money in the long run.
Real-Life Scenario
Tyler and Morgan were renting a downtown apartment for $2,400/month in Raleigh. After getting pre-approved by their loan officer (hi, that’s me!), they realized they could buy a three-bedroom townhouse nearby for the same monthly payment—and get a backyard for their dog.
With a 3% down loan, seller-paid closing costs, and a local homebuyer grant, they closed in 45 days. One year later, their home has appreciated 6%, and their rent-paying friends are still waiting on their landlord to fix the dishwasher.
What to Do If You’re on the Fence
- Talk to a mortgage pro. You might qualify for more than you think—or find programs with low upfront costs.
- Compare apples to apples. What does rent cost vs. owning in your area? Run the real numbers.
- Check your timeline. If you’re planning to stay put, it’s worth exploring.
- Ask about incentives. From seller credits to down payment help, there are options out there.
The loan officer or real estate agent who shared this article can help you explore those possibilities—and tell you what’s realistic based on your goals.
FAQs: Renting vs. Buying in 2025
Is renting cheaper than buying in 2025?
Not always. In many markets, monthly mortgage payments are now on par with rent—and buying may offer tax benefits and equity growth.
What credit score do I need to buy?
Many programs accept scores starting at 620, and some even go lower. Talk to a lender to explore your options.
Do I need 20% down?
No. There are programs with 3%, 5%, or 10% down—plus grants and seller credits that can help cover closing costs.
What if I plan to move in two years?
Buying usually makes sense if you plan to stay put for 3–5 years or more. Otherwise, renting may still be the better fit.
Final Word
There’s no one-size-fits-all answer to renting vs. buying—but there is a right answer for you. If your rent keeps climbing, your lease is expiring, or you’re just ready for a place that’s truly yours, now is the time to ask: what’s really holding you back?
The real estate agent or loan officer who shared this article can help you explore options, run the numbers, and maybe—just maybe—turn those monthly payments into something that actually belongs to you.