Fifth Third Bank Answers Question: Buy Versus Rent?

Jun 30, 2023 4:00 PM ET
Photo of family touring a house for possible purchase.

Should you rent or should you buy? There are a variety of factors to consider, says Fifth Third Bank. Surprising to some, buying a home is typically cheaper than renting, depending on the location.

When you rent versus buy, you lose the opportunity to build wealth through homeownership. Rent has been continually increasing, so the time may be right to consider making a home purchase.

As a rule of thumb, if you’re planning on staying for the next 5-7 years, then buying a home may be a better long-term solution. On the other hand, if you’re thinking about moving in the near future, renting may be the better choice.

There are a variety of benefits of homeownership, including having the ability to paint, plant and make changes and renovations. Typically, that is not allowed when you rent. Also, when you own a home, it helps grow equity and you may be able to deduct mortgage interest on your taxes1.

Ultimately, you should weigh the pros and cons of buying or renting, and Fifth Third also offers a rent versus buy calculator to help.

1Fifth Third does not provide tax or legal advice. Please consult your tax advisor or attorney before making any decisions or taking any action based on this information.