Renting Feels Cheaper—But Is It Smarter?

In 2025, many would-be homeowners are stuck on the same question: Should I keep renting, or is it finally time to buy?

At face value, renting might seem like the cheaper choice. In several U.S. markets, renting a similar-sized home costs about $900 less per month than buying a starter home. That kind of savings can feel hard to ignore.

But Jorge Martinez of championmortgagelending.com urges buyers to look deeper. “Rent is 100% interest,” he explains. “Every payment you make disappears forever. There’s no ownership, no equity, no long-term return.”

What You’re Really Paying For

Renting might seem more affordable short-term, but it lacks the wealth-building benefits of homeownership. When you buy a home, you’re not just paying for a roof over your head—you’re investing in your future.

With each mortgage payment, you’re building equity—essentially paying yourself back over time. Plus, homeowners can benefit from tax deductions and potential appreciation in property value.

Today’s Rate Doesn’t Have to Be Forever

One hesitation Jorge hears often is concern about current mortgage rates. But here’s a key insight he shares: “You can always refinance when rates come down. That rent payment, though? It’s almost guaranteed to go up.”

Most leases include annual rent increases, and tenants have little control over how high those hikes go. With a fixed-rate mortgage, however, your principal and interest stay consistent—adding stability to your monthly budget.

Buying Is a Long-Term Play

It’s easy to compare monthly costs and assume renting wins. But real financial growth comes from long-term thinking.

“If you can afford the payment now, even if it’s a little higher, you’re locking in an investment that grows over time,” Jorge says. “That’s something rent will never offer.”

Let’s fast-forward: five years from now, will you have equity in a home of your own—or five years of rent receipts and nothing to show for them?

You Don’t Have to Do the Math Alone

Not sure what buying would look like for your situation? Jorge Martinez can help you break down the real numbers and options.

“It’s not about guessing—it’s about running the numbers,” Jorge explains on championmortgagelending.com. “Most people are closer to qualifying than they think.”

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