Rent vs Buy FAQs

What costs of owning are included?

We include mortgage payments, property taxes, insurance, and maintenance. The model also estimates equity from loan principal repayments and home appreciation.

What’s not included?

Closing costs, transaction fees, tax deductions, opportunity cost of the down payment, and HOA/condo fees. Adjust inputs to approximate these factors.

How do I interpret net cost of owning?

Net cost is total ownership outflows minus estimated equity at the end of the horizon. Lower net cost relative to total rent paid can indicate owning is favorable.

How does rent growth affect the comparison?

Higher rent inflation increases total rent, which can make owning more attractive over time, all else equal.