The breakeven point where buying becomes cheaper than renting is typically 5-7 years in most markets.
The breakeven point where buying becomes cheaper than renting is typically 5-7 years in most markets. Factors: home appreciation (3-5% avg nationally), mortgage interest tax deduction value, maintenance costs (1-2% of home value annually), opportunity cost of down payment invested elsewhere, and closing costs (2-5% of purchase price). In high-cost metros like SF, NYC, and LA, renting can be financially superior for 10+ years.
In lower-cost markets like the Midwest and South, buying breaks even in 3-4 years. The NYT rent-vs-buy analysis shows location is the strongest variable.
The PivotReset Decision Support Engine shows you the 12-month financial projection for each path.
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