Should I Rent or Buy a House?

With today's housing market volatility and rent prices that seem to climb every month, the question of renting versus buying feels more pressing than ever.

If you're staring at your lease renewal notice or scrolling through real estate listings at midnight, you're probably wondering which path is better for your wallet and your life right now.

Money plays a big role in this choice, but it's not the only factor you need to consider. It’s also about where you'll wake up every morning, how much control you'll have over your space, and what your future might look like in five or ten years.

There’s no formula that works for everyone, but there are some key things that can help you figure out what's right for your situation.

This guide is for first-time buyers navigating homeownership, longtime renters wondering if it's time to make a move, or anyone relocating to our area and weighing their options.

Why People Choose to Rent

Flexibility

Flexibility is probably the biggest advantage of renting. When your lease ends, you can move across town, across the state, or across the country.

If a new job opportunity comes up, you can simply give notice and relocate. This is especially valuable if you are early in your career or planning for future changes.

Lower upfront costs

Renting also comes with lower upfront costs. Most landlords require first month’s rent and a security deposit.

You do not need to save tens of thousands of dollars for a down payment or pay for closing costs, inspections, and other fees that come with buying a home.

No maintenance responsibilities

When a water heater breaks in the middle of the night or the roof leaks during a storm, renters can call the landlord to handle it. There are no unexpected repair bills, no need to find contractors, and no weekends spent on home repairs.

Depending on the lease, some landlords may require tenants to cover routine maintenance, like A/C service, light bulbs, or smoke detector batteries.

Tenants might also be responsible for a portion of larger repair costs, for example, covering the first $200 while the landlord pays the rest.

The Downsides of Renting

No equity building

One of the biggest drawbacks of renting is that you are not building equity. Every rent payment goes to the landlord, and none of it helps you build long-term financial stability. The landlord gains equity and wealth, while you do not.

Rent may increase

Another downside is the risk of rising rent. When your lease ends, the landlord can increase the amount, and in a competitive market, that increase may be significant. Many renters end up priced out of neighborhoods they have called home for years.

Limited control over space

Renting also limits how much control you have over your living space. Even small changes, like painting the walls, may require approval.

Bigger upgrades, such as remodeling a kitchen, are usually not allowed. If the landlord does not prioritize maintenance or updates, renters may have to live with older fixtures and systems.

Why People Buy Homes

Building equity

The biggest advantage of buying a home is building equity. Instead of paying rent that is gone forever, part of each mortgage payment goes toward owning more of your property. Over time, as you pay down the loan and the home’s value increases, you build wealth.

Stability and control

Homeownership also provides stability and control. A landlord cannot decide to sell the property or refuse to renew your lease.

The home is yours, and you make the decisions. You can paint the walls, renovate the kitchen, or upgrade systems to match your lifestyle.

Possible tax benefits

Owning a home may also come with tax advantages. In many cases, mortgage interest and property taxes are deductible, which can lower your tax bill. In addition, if you sell your primary residence after living in it for a certain period, you may be able to exclude some of the gains from taxes.

The Challenges of Buying a House

Large upfront costs

The upfront costs of buying a home can be significant. While some loan programs offer 0% down payment options, many require between 3% and 20% of the purchase price, and not everyone will qualify for the lowest down payment options.

On top of that, you’ll need to budget for closing costs, inspections, appraisals, and other fees that can add up to thousands of dollars.

Long-term commitment

Buying a home is also a long-term commitment. Selling a house is not as simple as ending a lease.

It involves real estate commissions, closing costs, and the time and effort required to list and sell the property. If you need to move quickly, you may even lose money in the process.

Maintenance and repairs

Homeownership also means taking on the full responsibility of maintenance and repairs. If the water heater breaks or the roof needs to be replaced, those expenses come out of your pocket. Major repairs can cost thousands of dollars and require careful planning.

Questions to Ask Before Deciding to Rent or Buy a House

How long do you plan to stay in the area?

Consider how long you expect to stay. If you might move within the next couple of years, buying is probably not the best choice. A common rule of thumb is to plan on living in a home for at least five years to offset transaction costs, though the exact timeframe can vary depending on the market.

Do you want the flexibility to move?

Think about how much you value flexibility. Some people like the idea of being able to relocate for a new job, lifestyle change, or simply a different environment. If that appeals to you, renting may be the better option, at least for now.

Is your career stable?

Your career situation is an important factor. If you are in a stable job with a predictable income, buying may be a good option. If you expect major career changes, income fluctuations, or relocation requirements, the flexibility of renting may outweigh the equity-building benefits of buying.

Are you planning for major life changes?

Future life changes can also impact your decision. If you are planning to get married, start a family, or go through other major changes, your housing needs may shift significantly. Renting can give you more time to figure out what type of home will best fit your future plans.

How do you feel about maintenance?

Be honest about how you feel about maintenance. Some people enjoy home projects and repairs, while others prefer to avoid them.

Homeownership comes with ongoing maintenance responsibilities that can be time-consuming and expensive, so it is important to know where you stand.

Renting Might Be Better If...

You are unsure where you want to live long-term

If you are still figuring out where you want to put down roots, renting gives you the flexibility to explore. Maybe you are new to the area, or you are not certain this city is where you want to stay.

Renting allows you to try out different neighborhoods and get a better sense of what you want in a long-term home.

You do not have a stable income yet

If your income is not consistent, renting may be the safer choice. Freelancers, business owners, or anyone with fluctuating earnings may find the flexibility of renting more valuable than the equity that comes with buying. A mortgage payment can quickly become a burden if your income drops.

You do not want to deal with maintenance or property taxes

Homeownership comes with responsibilities like maintenance, property taxes, and homeowners insurance. If you prefer predictable housing costs and the ability to call someone else when a repair is needed, renting may be the better fit.

Buying Might Be Better If...

You have saved enough for a down payment and an emergency fund

Being financially prepared is key to buying a home. This means having enough saved for a down payment and an emergency fund, along with a stable income to cover the monthly mortgage. It is also important to factor in property taxes, insurance, and maintenance costs when determining what you can afford.

You plan to stay in the area for several years

Buying works best if you plan to stay in the same place for the long term. If you love the area and expect to be there for at least five years, the financial benefits of ownership begin to outweigh the costs of buying and selling.

You are ready for the responsibilities of homeownership

Owning a home is about more than the financial commitment. It also means being prepared to handle maintenance, repairs, and the decisions that come with property ownership. If you are ready for those responsibilities, buying may be the right step.

Read more: Unexpected Lessons For First Time Home Owners

There’s No One-Size-Fits-All Answer

There is no single “right” answer that works for everyone. Your sister may have bought a house at 25 and loves it, while your best friend rents and could not be happier. Both choices can be right, depending on the person and the situation.

What matters most is being honest about your financial situation, lifestyle preferences, and future plans. Run the numbers, but also consider the non-financial factors.

For some, the peace of mind that comes with renting is worth more than the equity they could build by buying. For others, the stability and control of homeownership is exactly what they need.

Do not let anyone pressure you into believing there is only one correct choice, or that you are missing out if you choose to rent instead of buy, or vice versa. The best decision is the one that fits your circumstances.

If you have done the math and are ready to take the step into homeownership, our credit union is here to help. We offer competitive home loan rates and local service.

Stop by one of our branches in Lafayette or New Iberia to meet with a home loan specialist and explore the options available to you. We are proud to serve members throughout Lafayette, Iberia, Acadia, Vermilion, and St. Martin parishes.

Buying a home is one of the biggest financial decisions you will make, and our team is here to guide you through the process and help you find a loan that works for your budget and your goals.