Why Homeownership Still Wins Over Renting — Even in a High-Cost Market

When affordability feels stretched, many people wonder: is buying a home still worth it compared to renting? It’s a fair question, especially when interest rates and home prices are higher than they’ve been in years. But when you zoom out and look at the long-term picture, homeownership almost always comes out ahead.

Here’s why:

The Cost of Renting vs. Buying

Let’s start with the basics. If you rent at $2,000 per month, that’s $24,000 per year. Over 5 years, you’ll spend $120,000 and none of that comes back to you. It’s money paid out to your landlord with zero return on investment.

Now let’s compare that with buying.

Homeownership Builds Wealth Over Time

Take a home with a starting value of $400,000. Even at a conservative appreciation rate of 3% per year, here’s what happens to your home’s value over the next 5 years:

• Year 1: $412,000

• Year 2: $424,360

• Year 3: $437,091

• Year 4: $450,204

• Year 5: $463,710

That’s a total increase of $63,710 in home value. Unlike rent, that gain goes back into your pocket as equity.

💡CLICK HERE to use our Rent vs Buy calculator to evaluate what is right for you.

Equity = Stability + Options

The beauty of equity is that it’s not just “paper value.” Equity can help you:

• Reinvest into your next home when you sell.

• Access cash through refinancing or a home equity line of credit.

• Build long-term financial stability and wealth.

Renting, on the other hand, leaves you with nothing at the end of those same 5 years.

More Than Just the Numbers

Beyond the financials, homeownership comes with lifestyle and stability benefits:

• Predictable payments (with a fixed-rate mortgage, your monthly payment stays the same—unlike rent, which tends to rise).

• Freedom to customize your home to your style and needs.

• A sense of permanence—knowing your home is truly yours.

📌 MORE GOOD READS >>> How to Afford a House in Colorado Springs  |  Will Home Prices Ever Drop? A Realistic Look at Housing Affordability  |  How Much Income Do You Need to Live in Colorado Springs?

The Bottom Line

Even in today’s market, buying is still the better long-term move. Rent is money spent and gone forever, while homeownership builds equity and opens doors to financial security.

So yes—the affordability challenges are real. But if you’re weighing the choice between renting and owning, remember: the sooner you start building equity, the sooner your home starts working for you.

👉 Curious what buying could look like for you? Let’s connect and run the numbers together—your future self will thank you.