Long-horizon housing tradeoff
Rent or buy after the math has time to work.
Compare home equity against a renter's invested portfolio across 5, 10, and 30 years. The model separates ownership costs from wealth accumulation so the choice is not reduced to one monthly payment.
Use this when
You are deciding whether ownership beats flexibility.Start with a payment estimate, then compare rent, appreciation, and investing assumptions.Data Updated: March 2026
Purchase scenarioHome equityPrice, rate, taxes, maintenance
Rental scenarioCash flowRent and annual rent growth
Market returnPortfolioDown payment and savings invested
Time horizon5 / 10 / 30Compare short and long holding periods
Run the comparison
Test the assumptions that change the winner.
Change home price, down payment, rent, tax rate, appreciation, and market return. The result is a planning model, not a prediction of future markets.
Purchase Scenario
Rental Scenario
Market Assumptions
After 10 years, it is better to
buy
by +$105,717 in net wealth.
Renting WealthBuying Wealth
Net Worth if Renting
$215,097
Assumes down payment and monthly savings are invested at 7%.
Total Rent Paid (Lost)
$309,709
Net Worth if Buying
$320,814
Home value ($592,098) minus remaining loan ($271,284).
Total Sunk Costs (Tax/Int\Maint)
$294,849
Model logic
Sunk cost vs. opportunity cost.
This is not only a monthly cash-flow check. It compares buyer equity with a renter portfolio that invests the down payment and any monthly savings.
Renter portfolio
The down payment and monthly savings are invested at the selected market return.
Buyer equity
Home value is compared against remaining loan balance after principal paydown.
Growth assumptions
Rent inflation, home appreciation, and market return can move the result sharply.