Buy vs Rent by City

The data is clear: disciplined renters are generally better off financially

In 2026, high mortgage rates (6.5%) mean that interest payments alone nearly equal home appreciation in most markets. Meanwhile, a renter who invests the down payment and monthly surplus at 8% (7.2% after tax) benefits from the S&P 500’s long-term outperformance of real estate - stocks have returned ~10%/yr since 1891, versus ~3.4%/yr for homes (Shiller data). A 30-year Financial Planning Association study confirmed renting won in half the metros studied, especially over shorter holding periods.

The critical assumption: our calculator models an 80% savings discipline rate - meaning 20% of renter surplus is spent, not invested. Even with this realistic haircut, renting wins in most high-cost cities. However, the median homeowner’s net worth is 41x higher than the median renter’s ($430K vs $10K), because a mortgage forces savings automatically. If you wouldn’t reliably invest the difference, buying may still be your best path to wealth.