Is It Better to Buy or Rent? Here’s the 5-Year Comparison.
When deciding whether to rent or buy, the numbers matter—and this chart shows the clear financial advantage of owning a home.
By Year 5, buying a $350,000 home in Maricopa, AZ, results in a net gain of $61,297 compared to renting. Here’s why:
- Appreciation Gain – With an average annual appreciation of 4.45%, your home’s value grows to $435,061 in just 5 years, creating $85,061 in equity.
- Amortization Gain – Every mortgage payment reduces your principal balance, building another $22,620 in equity.
- Stable Payments vs. Rising Rent – Rent increases by an average of 6% per year, meaning renters spend $147,792 over 5 years without building any wealth. Buyers, on the other hand, put their money toward equity.
Even after accounting for closing costs, maintenance, and selling expenses, homeowners come out tens of thousands of dollars ahead.
Bottom line: Renting is money spent. Buying is money invested.
If you’ve been on the fence about homeownership, now is the time to explore your options and start building equity for your future.
August was an exciting and meaningful month, both personally and professionally. I officially announced my candidacy for Arizona State REALTORS® Treasurer, a role I am honored to pursue as I continue serving our industry and advocating for REALTORS® across the state. On a personal note, my son began his second year at Dominican University in Illinois, an achievement that fills me with both pride and anticipation for all that lies ahead for him. Closer to home, my loyal four-legged companion celebrated another birthday and remains a constant source of joy and balance in my daily life.
Do you have a house to sell?
AMAZING CHARACTER THROUGHOUT
15223 E. Aspen Dr., Fountain Hills, AZ
- FULLY FURNISHED Incredible Adobe-style home with Santa Fe accents.
- Tall ceilings in the living room with a beehive fireplace and an Arcadia door.
- The office features double doors into the room with a desk and a pull-out sofa sleeper with a closet.
- The guest bedroom has a queen bed and a dresser with plantation shutters.
- Full guest bath, eat-in dining room, and the MASSIVE telescope to take in the night sky.
- The master suite features a large room with a cozy king bed, a walk-in shower, a private water closet, dual sinks, and a walk-in closet.
- Spa on the back patio and a spiral staircase to a second-floor viewing deck with 360-degree desert views.
- Watch the night sky and enjoy the serene desert in the beautiful private pool.