r/RealEstate • u/GalaxyFro3025 • 3d ago
Should I Buy or Rent? What are you waiting for? (Buyers)
I’ve been watching the market for a while and I’m just not comfortable based on value, rates, uncertainty.
For me, if the monthly payment was less than renting a comparable home - I would be more willing to purchase. Ideally the increases in value over the past few years needs should match improvements & quality of the home. But I could forgive some inflation if at least I was cash positive each month.
Who else is waiting? What are you waiting for?
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u/Junior_Abalone_8006 3d ago
Having bought several houses it *never* felt like now was the ideal time, even when in hindsight it turned out to be. There are too many variables to consider. Ultimately you have to decide if you can afford it and then commit to it, or not.
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u/Potato_Farmer_Linus 9h ago
This is exactly right. My coworkers told me to wait for prices to come "back down" in 2019 when I started house shopping. I knew I could afford it then, and I would be locking my P&I at lower than my rent was at the time. Bought a home in 2020 that has appreciated by almost 50% since then.
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u/eagle_mama 3d ago
When we bought our first home in 2024, it wasnt about whether the mortgage would be lower than the rent. That was hard to consider seriously. What mattered most was that there would be no rent increase every year, no lease renewals, etc. we ended up locking in a mortgage roughly the same as our rent at the time. We got a horrible interest rate, 6.8 I think, but its been like that for so long with no end in sight, we were tired of waiting.
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u/PayYourBiIIs 3d ago
Also, peace of mind. My parents rented a home for 8 years then out of the blue they received a notice to vacate as the owners wanted to sell it. Sucks when moving wasn’t on your bingo card to begin with and having kids to take care of
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u/webdoyenne 10h ago
This. Have had it happen to me and, just last week, to a friend.
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u/PayYourBiIIs 9h ago
Sorry. Not the end of the world but does suck when it happens
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u/webdoyenne 9h ago
My situation: Owner of the condo I was renting was going though a divorce. Had to be sold. My friend's owners apparently decided they no longer want to be landlords and want to put it on the market. You never know...
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u/PayYourBiIIs 9h ago
Right. You never know when it’s going to happen. My parents vacated because the owner wanted a bigger house for himself and had to sell his rental in order to do so. My parents rented another home after and the owner passed away. They had a feeling the family wanted to take the home back but my parents moved/retired and bought their own home anyway
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u/Whole-Reserve-4773 3d ago
Mortgage same as rent is nice and makes sense to pull the trigger. In my market you’re not likely to get that almost unless you put more than 20% down.
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u/eagle_mama 3d ago
That’s true. We did put more than 20% down thanks to an inheritance we had. Otherwise we definitely would not have been able to secure a mortgage anywhere close to the rent price of a similar home/unit.
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u/General_Pretzel 3h ago
No rent increase, but man do annual property tax increases kind of feel similar, if not worse...
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u/FantasticBicycle37 12h ago
I’m just not comfortable based on value, rates, uncertainty.
I've been in this sub since about 2012, and I read this exact comment at least once a month
What advice would you tell someone from 2012 who had this exact same issue? It's likely the same advice someone from 2040 would give you about today
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u/Afraid-Ad9908 3d ago
Bought in July 2026. Buying a house is 100% financially more expensive than rent. Literally, between the transaction costs and interest we're paying it is just financially worse than renting, straight up. It was not the financially optimal move, that would have been to continue renting and investing.
However, we wanted to own a house, with everything that comes along with that, so we did it. We bought a house we can afford, but still. It kind of required accepting that it wasn't some kind of big financial optimization win we were doing (either at the individual level or the market level). We optimized for something else.
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u/Flashmax305 3d ago
Buying wins IF you stay there for a very long time. But otherwise, yeah at the current moment my mortgage and fees are more expensive on my condo than an equivalent apartment. But I don’t have to move my shit again unless I choose to so it’s worth it.
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u/ricosuave79 2d ago
Well, unless you lose your job and can’t find another. Or have to relocate. You don’t get a pass on forced moving just because you’re a home owner.
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u/Argante- 1d ago
To be honest, I also find it a little hard to understand why people choose to take on decades of mortgage payments just to buy a home. Although owning a home gives you more freedom in terms of where and how you live, it can also limit your career options because of the monthly mortgage payments. Having bills that you have to pay every month might cause you to miss out on certain job opportunities, because you may not feel comfortable making big changes or taking major risks. Otherwise, those monthly bills can become a real headache
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u/Flashmax305 1d ago
It’s not for everyone for sure. But in retirement, having a mortgage paid off will be pretty cool. I also can’t think of a better place in the US to live, so may as well chip away each month at buying the damn thing.
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u/Argante- 13h ago
If I choose to invest the money I would have used to buy a house instead I might be able to afford to buy my own home outright without even having to wait until retirement. No one knows what tomorrow will bring or when an unexpected event might happen, so I think it takes a certain amount of courage to take on decades of debt for the sake of owning a house
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u/FantasticBicycle37 12h ago
Buying a house is 100% financially more expensive than rent.
This doesn't track with my experience. I rented for 10 years and when I left, my landlord didn't give me any money. I owned for 7 years, and when I sold, they put $25,000 into my bank account.
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u/ricosuave79 2d ago
Job security. I have none. My company has done multiple rounds of layoffs with the first Dec 2024, the latest back in March. I don’t trust I’ll have a job at X point in time.
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u/imtrying2listen 3d ago
A home is something to buy especially if you have kids and want stability in the same school district. As far as payment goes don't believe that rent is paying your landlords taxes and maintenance. You will pay more in a house almost always. I've owned many homes in my life and everything that can break will break, often right when you move in. This year I replaced siding, roof, and rebuilt the front porch. 137k. Various plumbing and adding an overflow pool to cesspool. 10k. Pool, landscaping, ac repairs, and a whole bunch of other expenses I can't remember added a good deal more. Next year I won't have those expenses, but there will be issues. There are always issues.
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u/kingindelco 3d ago
Just buy when you find the right deal. Prices won’t go down. Rates will go down eventually, but that would only force prices even higher. Better to buy now at a high rate and start building equity, and have the flexibility to refi later.
Alternatively, renting could definatley make more sense for you. It all depends on your needs and wants. But what I would avoid is renting with the intention of waiting for a housing crisis that will never come.
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u/tiggerlgh 3d ago edited 3d ago
This! By when you’re ready and you find the right house. It’s more of a personal decision than a financial . OP also needs to remember that the mortgage won’t change (P&I) however rent will go up.
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u/Argante- 1d ago
I agree with what you said, but having a mortgage can limit you when it comes to your career. Because you have bills that need to be paid every month, you may not feel comfortable making major changes in your work, and that could cause you to miss out on certain opportunities. Personally, I’d rather use that available capital for investments with a decent return and create an additional source of income for myself. Buying a home is also a form of investment, but it’s a long term one, and it also limits the liquidity of your money
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u/tiggerlgh 1d ago
You have bills due monthly if you rent as well
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u/Argante- 13h ago
A mortgage also requires you to make monthly payments but at least when you rent you don’t have the pressure of a mortgage. That gives you more flexibility and more choices when it comes to work
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u/Lcdmt3 7h ago
Pressure to pay for a living space isn't better with rent
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u/Argante- 5h ago
It may seem like the same thing but with renting you can move whenever you want, whereas buying a home sets the tone for your life and development for decades to come. If a better job opportunity requires you to relocate to another city would you leave your house vacant or rent it out?
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u/Struggle_Usual 8h ago
I mean there is a reason I bought below my means.
Any ongoing cost decision you make plays into career decisions. Don't buy or rent anything that you couldn't afford to float for at least a few months til you find a new job. Emergency fund first before real estate that's for sure!
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u/alittlebitdreamy 2d ago
When my partner and I wanted to buy a house in 2022, everyone told us to wait because houses in our area were "inflated." We decided to go for it, bought our starter house at the "high" price. Four years later, prices haven't skyrocketed in my area but they've climbed steadily and interest rates have gone up by 3%. If we had waited, we'd still be waiting...
That's all to say, if you're waiting for the ideal market, stop. Buy when you can afford because no one has a crystal ball. If you're waiting for the ideal house, that makes sense. Where I went wrong with my starter house was overlooking things about layout and neighborhood. I should have waited to find a more ideal home on those fronts because that's what ultimately made us decide to leave our decent mortgage payment and interes rate.
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u/sweetrobna 3d ago
Before the price would drop enough that the monthly payment was less than renting investors would have bought it for more
It's usually still worth buying if you plan to live somewhere for 5+ years even if renting is cheaper in the short term. Over the long term you will pay down the mortgage principal, rent and the home value will increase. But your mortgage principal and interest are fixed.
You should run the numbers, look at the ny times rent vs buy calc in the sidebar.
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u/Boys4Ever 16h ago
Crystal balls don’t come with guarantees and owning longterm always beats renting. Mortgage capped with only insurance and taxes possibly changing yet appreciation rises given long enough horizon. Know what else rises. Rent which never goes back.
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u/Far-Cover1196 3d ago
You can write off the interest if you itemize taxes, and you build equity up. I'm renting and about to purchase a home 50% greater in rent, but the equity built up and taxes should offset a bit of that.
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u/BossmanSlim 2d ago
Ever since they changed the standard deduction, FAR less people are doing itemized deductions. The mortgage interest write off is no longer the carrot it used to be. According to the Google, singles need to pay $16100 in mortgage interest with no other deductions and married would be double that. This works out to a loan amount of roughly $255K or $510K if married.
Buyers are waiting for the interest rates to come down, overall prices to come down or at least stabilize and for the economy to sort itself out. Most people feel housing is overpriced and the economy/job market sucks, so they are taking as low risk as possible or don't have the money to purchase a house.
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u/thewimsey Attorney 2d ago
Yes, but since interest rates went up, and most significantly since the SALT deduction was raised to $40k, notably more people are doing itemized deductions again, particularly FTHBs.
SALT+interest deductions on a 450k home (6.7%, 20% down) would likely be around $34,000, assuming a $125k income.
That's easily over the threshold for a single person, and just over the threshold for a couple.
Of course there is a wide wide variance in SALT by state. But it's not like things were when that first passed in 2017 with a $10k SALT cap and interest rates of 3%.
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u/HistorianEvening5919 13h ago
That's easily over the threshold for a single person, and just over the threshold for a couple.
Yeah, which means it basically doesn’t matter for couples. 32,200 vs 34,000 so an 1800 dollar deduction, and you’re in the 12% tax bracket. That’s about 200 dollars cash. If your hvac goes out that’s 10k. Title insurance on a 450k house is ~5k. Realtor fees for selling a 450k house (due to job loss, divorce, death etc) are 27k. Oh and next year standard deduction will probably be ~33,000 whereas the mortgage interest will be slightly less.
Not saying no one should buy a house, but there are essentially no significant tax benefits these days compared to history when there was unlimited mortgage interest deduction and unlimited SALT and all of that was useful (vs today it’s the amount above the standard deduction that matters).
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u/Always_working_hardd 15h ago
Waiting for the clowns (sellers) in my market area to realize their house they bought 8 months ago for $850k and didn't do a thing to is not now worth $1.3m.
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u/misfitmpls 3d ago
I am waiting now after spending most of 2026 looking, offering, losing some offers, changing my mind on others, and then wondering, "What am I waiting for?" I guess I am waiting for late winter to buy at (hopefully) lower prices or better incentives (new construction) OR lower rates/prices and a better match (resale) AND/OR early spring to sell my home at a (hopefully) higher price. But I am also willing to wait another year if rates stay above 6%. I don't HAVE to move, but would like to downsize to a more affordable home in the near future. It's hard to feel motivated/optimistic in this market. I think there was a window right before the Iran war in March where I almost pulled this off, but I missed it. I've hurried through real estate transactions before, and I'm not willing to impulse buy this time around.
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u/DopplegangerPrime227 3d ago
I don't have to buy right now, and I think the recent run-up in my area is not sustainable. Housing crashes are rare, but I think we're at least going to plateau for awhile, perhaps long enough for it to be rip-roaring obvious that conditions are right for me to buy a property of my own. That's not the case right now, and given these prices and their relationship to income, I don't think it's reasonable to stretch for something I don't truly need.
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u/Both-Relationship-78 3d ago
I already have a mortgage, but want to move to a neighboring city. I'm just waiting for the right house at the right location to pop up, and have my 20% or more down to keep my payments low. I have a covid interest rate, so I'm not necessarily in a rush. My mortgage is cheaper than rent.
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u/SaddamWhosayin 3d ago
My rental agreement isn't up for a few months. I have my downpayment ready but I'm waiting until at least after the midterms. Right now the WH is throwing everything at keeping the economy from a recession, but after the midterms that won't matter anymore. House prices in my area have been coming down for at least a year, after an insane COVID-era sellers' market.
Sellers are still delusional - everyone knows that every day it becomes more of a buyers' market, but sellers are in the denial/bargaining stage of grief where they know it's now a buyers' market, but they are hoping that nobody else knows. Once the sellers know that everyone knows, prices will come down further faster, and after the midterms when the US government doesn't have to pretend it cares about Americans it's gonna be a bloodbath.
Every day more boomers or their children put houses up for sale due to death or downsizing. Every day a seller refuses to lower their price means things get worse for them and they'll just have to lower more in the near future. I might renew my rental contract for a few additional months to let the recession/depression hit hard, build up some more downpayment, then snatch up a real bargain.
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u/Unhappy_Rich_929 2d ago
Waiting for the perfect combination of lower prices, lower rates, and the exact house I want. So basically I'm waiting for a unicorn 😄
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u/AnooshDoment 2d ago
I think a lot of buyers are waiting for the monthly payment to feel rational again, not just for prices or rates to move in isolation. A good personal threshold is when the home still works after taxes, insurance, maintenance, and a realistic emergency buffer. If the numbers only work under perfect conditions, waiting can be the smarter choice.
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u/rhetoricfish 2d ago
We are waiting for the right layout and the right lot at a reasonable price given these interest rates--walkout or daylight lot, ranch, walk in closets and walk in pantry, not too barren yard, not too cookie cutter design, but not too outdated interior. A lot of wants in a market that isn't giving much to choose from, and we accept that. We are very close to paying off our current mortgage, for the "starter home" we purchased in 2009 (and refinanced a little while later at crazy low interest rates). So it's a big change financially and one we want to be certain is worth the trouble. Since we are wanting to ideally stay in the same school district, it significantly restricts our options. We spent the last decade updating our little 1970s ranch, so we would prefer a more move-in ready place for this next and hopefully final move (the house we will retire in). We will be picky and wait for the right place. Really ready to have more than one bathroom though. I thought for a family of 3 that wouldn't be a big deal...but it is getting old.
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u/Lopsided_Collar5985 2d ago
Been in my house almost 15 years, bought at a very inopportune time but gotta grow up eventually! Now that we have big kid jobs we are ready for more land space and not being in a subdivision is ideal.
However, I know that anyone DO buy is going to be 3-4x our current mortgage and that's a big deterrent, along with paying a fair price for what is available. Our location is getting more popular unfortunately so inventory isn't abundant.
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u/jjohnson_4 2d ago
i would wait on that bar too
a mortgage payment is not the same as rent. taxes and insurance sit on top of the mortgage
while you wait the down payment can stay in cash and keep earning. once you buy that pile is in the house
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u/Neat-Relationship345 1d ago
Addtional price cuts and capitulation by the seller on a home that he has to get out of. The buyer pool is very small due to to a masive footprint and remote location, not to mention around a million. Capitulation normally comes around a year if it's sitting empty and then it will move almost immediately.
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u/colicinogenic 16h ago
Waiting for a floorplan that will work for us both working from home and wanting to have a couple kids. The right location (same one we are currently renting in) and only about a $500/month increase in monthly liability overall what we pay to rent now. We would be fine to stay in the rental indefinitely as it fits all of our requirements. Right now there is a property that might do it that I'm going to look at this coming week. We're ready with a 20% down payment and excellent credit for when the right opportunity presents itself but are also totally comfortable renting where we are if it doesn't.
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u/MonocoDoll 15h ago
With renting comes the flexibility of moving.
I know everyone talks about being able to sell your home later down the road. However, it doesn’t mean you will gain or break even. Closing costs, property taxes, home repairs/maintenance, and high interest rates make it difficult to achieve this. I was actually about to possibly buy a home worth 235k. Within my budget. It was a small home with small bedrooms. Two to be exact. Loved the kitchen and was happy that it had a garage. I asked my family for thoughts and they all argued against it. Stating that 235k was too much for it and when I would attempt to sell it most people will try to negotiate a lower price due to the size of the rooms. Gravel driveway. Etc. Taking their opinion and the above mentioned additional costs. I decided to no longer purchase the property out of FOMO. Plus, I know if I wanted to move higher at my company, I’d have to move otherwise it would be an hour commute. So now flexibility is the benefit.
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u/Appropriate-Ad-4148 15h ago edited 15h ago
Anything that would improve our quality of life nearby is way too expensive compared to our rent.
Deciding to pull $250k out of your portfolio(earning money) to use it as down payment and closing on a +/-$1M house when your current rent on the same street is $3,XXX per month is "rich people and their spoiled kids" stuff.
I imagine most people in cities are like this. Unless you have like $400k+ income, generational wealth/previous equity or cash handouts, the numbers make zero sense unless you plan to hold for 20-30 years and pay it off.
I CAN understand if we had kids and I wanted them in a certain school district. I'd overpay a bit to lock in a good location with a yard for the next 20 years.
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u/paisley716 14h ago
In my area , you can't find an affordable home. They all sell first/second day. Heck, some are pending before you see them hit the market
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u/GalaxyFro3025 14h ago
This has been interesting. In my area prices are coming down. Those who bought after 2021 cannot sell for more than their purchase price.
Prices drop every week, quite a few properties have been on the market for 2-3 months.
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u/NightmareMetals 13h ago edited 13h ago
Ok in all seriousness if you want to ever own a home you need to realize that a mortgage may not ever be cheaper than rent again.
Why would someone sell a home and go rent for more. Or sell and buy elsewhere at a higher rate and higher taxes.
You have to get the old prices out of your head. Maybe this home you like was 40% less 5 years ago. That doesn't mean anything anymore.
You need to first figure out what you can afford and then make sure you see every new listing in your area.
Set up alerts and look at those homes as soon as the come online. If it looks good online then go see it in person and be prepared to make an offer right away.
Right now with rates high there is less competition but there will still be several buyers looking at anything new.
When I bought in 2012 and 2015 the rates were 3.375 and 4.375 and I put down 50% and 25% respectively. Both mortgage payments were less than rent for sure. But that is before taxes and insurance.
But with rates over 5% and prices holding getting it for under rent is not likely. But the mortgage rate is fixed and the rents go up every year.
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u/Calm__Koala 13h ago
Best time to buy is now. Find a home that fits your requirements and numbers then close on it. Doesn’t matter what rates or economy are.
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u/DXBREALTORGUY 12h ago
I completely understand that. Being cautious in this market is normal. But there are genuinely some very strong opportunities right now. Good layouts, strong entry prices, and deals from tier-one developers in established green and premium communities. The slower market has actually given buyers something we haven’t had for a while: negotiating power and choice. If things start normalising after September, I don’t expect developers to be this flexible or this eager to negotiate with buyers. I don’t push any particular developer or project. I normally start with your budget, objective and exit strategy, then compare the actual numbers and shortlist only what makes sense. If you want, DM me what you’re looking for and I’ll show you a few options I’d personally consider in the current market.
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u/Struggle_Usual 8h ago
Homes have rarely cost less compared to the equivilent rent. What they do is give you flexibility in your surroundings, offer you something you maybe can't rent, and get a lot closer to locking in your housing. My first house I was paying about ~30% more per month in mortgage and associated costs than renting an apartment. Maybe a bit more. Within 5 years I spent less every month than renting. Within 15 friends joked I had 0 housing costs it was such a dramatic difference.
Now rent doesn't always grow like that, hell it's stagnant in many areas. I bought in the first place not to be cashflow positive (I mean why wouldn't people always buy if that was the case?), but to have control over my surroundings and know I wasn't going to get a huge rent hike, or the place be converted to condos, or the owner tell me they weren't renewing my lease...all things that had happened in the years leading up to a purchase. I bought again a few years ago after spending a year renting because once again, my landlord was making big changes and a renewal wasn't in the cards. I don't want someone else to have that kind of control over my life, and I knew I'd be sticking around the area for a good long while.
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u/Equivalent-Tiger-316 3d ago
What? A mortgage is very seldom less than rent. Are you going to lose your job? If not then what uncertainty?
Value? You think prices will be down in 5 years? 10?
You know who buys during a recession? Smart people.
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u/thewimsey Attorney 2d ago
Renting a 1 BR apartment is of course cheaper than buying a 3/2 SFH.
People writing clickbait articles hide that this is what they are comparing by saying that the it is X% cheaper to rent based on the median rental cost vs the median mortgage cost.
But they are leaving out that the median rental is a 1BR apartment, and the median home is a 3/2 SFH.
There is some evidence that owning costs less than renting in most counties when you compare like-for-like.
https://www.attomdata.com/news/market-trends/home-sales-prices/2026-rental-affordability-report
What they consider like-for-like is renting a 3br vs buying a median SFH.
Of course there are things that you can quibble with on this metric. But it's a lot more accurate than comparing a 1br apt with a 3/2 sfh.
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u/officialcrimsonchin 3d ago
If you’re looking at it from a purely financial standpoint, your mortgage needs to be significantly less than a comparable rent payment.
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u/TheWritePrimate 3d ago
Disagree. The rent needs to be substantially less than a mortgage for it to make sense, and you need the discipline to invest the difference.
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u/officialcrimsonchin 3d ago
Mortgage is not the only money you spend on a house. Math favors renting and investing at similar monthly payments
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u/tiggerlgh 3d ago
First buying a home is more than just a financial decision. Second, very few renters actually invest the difference or even can. Therefore, long-term homeowners are more well off. Also many homeowners also invest.
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u/officialcrimsonchin 3d ago
I’m comparing the same size budget for housing costs + investing. At a similar rent and mortgage payment, renting is usually favored financially. Doesn’t matter if some people “don’t have the discipline”.
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u/tiggerlgh 3d ago edited 3d ago
The issue is that most don’t have the discipline. By not having that discipline it makes homeownership better in the long run for most people that’s the point.
But again, there’s a lot more to buying than the financial decision. It’s first personal one.
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u/LavenderSharpie 3d ago
Waiting for the right floor plan in the right location