It’s Cheaper to Rent Than to Buy

At first glance, renting might seem cheaper — especially when you find a place with a low monthly payment. But here’s the real question: what are you getting for that rent?
Every month, when you pay your landlord, you’re helping them build wealth. Your rent covers their mortgage payment, property taxes, and maintenance — while they benefit from appreciation (their home increasing in value) and amortization (their loan balance going down).
After 20 years of renting, you’ll have paid hundreds of thousands of dollars — and still have more rent to pay next month.

After 20 years of owning, you’ve likely experienced:

• Long-term appreciation — your home’s value increasing over time.
• Amortization — your mortgage balance shrinking with every payment.
• More financial freedom — as your income rises with inflation, your mortgage payment often stays the same or feels much more affordable.

Meanwhile, rent typically goes up every few years to keep pace with inflation and your landlord’s rising costs (and profits).

Now, renting can make sense in certain situations — like if you’re relocating for work, new to a city, or not ready to settle down. But if your goal is to build roots and grow long-term wealth, buying a home provides lasting financial benefits that renting simply can’t match.

— Aaron Miller, Your Pittsburgh Mortgage Guy