Pros and Cons for Renting vs. Buying a Home in 2021

Renting vs. buying a home is a huge decision. Of course, there are pros and cons to each option. In recent years there have been a higher percentage of U.S. households renting than at any point since the 1960s. There are also different costs associated with renting vs. buying, which greatly depend on where you live and your local housing market. Read through our list of pros and cons below to determine the best option for you!


Pros of Buying a Home

Payments Build Equity

Homebuyers can take advantage on the equity their home accumulates over time. This means that if the home’s value goes up, you’ll make a profit on your home when you sell. Plus, having a fixed-rate mortgage means you won’t have to worry about rising rents.

Your home’s down payment results in having equity in the home, which increases as the mortgage is gradually paid off. Once you own your home, you have a valuable investment that renters never attain.

Tax Deductions

A big factor for buyers to consider is whether you will be able to deduct your mortgage interest. Tax laws allow those who itemize their taxes to write off their mortgage interest payments. Remember, not everyone is eligible to itemize deduction. Unfortunately changes to the tax laws in 2018 means that more people aren’t able to deduct as much of their mortgage interest and property taxes as they used to. Look into this for yourself or ask as at Delphi Realty to determine whether it is an option for you.

Stability & Control

If you own your home, you’ll likely enjoy more stability and control. You won’t have to worry about a landlord bumping up the rent or selling the residence out from under you. You still have the option to move, but it will be your decision—not a landlord’s.

Being a homeowner also allows you creative control of your property. You can alter the property, including exterior landscaping, décor/interior renovations and more to suit your needs and your style.

You also have the option of buying to rent which enables you to generate income from renting out the property. There is an opportunity to save money long term because there are possible tax deductions related to an income-generating property.

Cons of Buying a Home

  • Initial + Hidden Costs
  • Annual Taxes and Fees
  • Potential for Finance Loss
  • Loss of Mobility

Pros of Renting

Cheaper Payment

Make sure that you compare the cost of renting to owning in the place where you plan to live. According to a 2016 report, renting was less expensive in 98 out of 100 cities with a large population of residents 65 and older.

No Maintenance Costs

One of the benefits of renting a home is that there are no maintenance costs or repair bills. When you rent a property, your landlord is responsible for all maintenance, improvement, and repairs. If any appliance stops working or your roof starts to leak, you call the landlord, who is required to fix or replace it. This is a huge stress reliever!

Homeowners, on the other hand, are responsible for all home repair, maintenance, and renovation costs. Depending on what you’re repairing, it can get expensive quickly!

No Down Payment Required

Most rental properties require a security deposit, which protects the landlord against damage caused by the renter. You normally put down the first and final month’s rent payments when you sign a lease. When reviewing your lease contract, ask if the monthly rent includes utilities such as water, electric, gas, cable or internet.

Renters also have a better financial deal in the up-front cost. When purchasing a home with a mortgage, you’re required to have a sizable down payment—around 20% of the property’s value.

More Flexibility

Renters can live practically anywhere, while homeowners are restricted to areas where they can afford to buy. Living in an expensive city such as San Francisco might be out of the question for most home buyers, but it might be possible for someone looking to rent. Although rents can be high in areas where home values are also high, renters can more easily find an affordable monthly payment than home buyers.

It’s much more difficult to break free of an expensive house because of the fees involved with buying and selling a home. If a homeowner has invested a significant amount of money in property renovations, the selling price might not cover the costs, which could leave them unable to afford selling or moving when they’d like to. Renters don’t have to worry about this! Renters are also fortunate to have the option to downsize to a more affordable living space at the end of their lease. Such flexibility is especially important for retirees who want a less costly, smaller alternative that matches their budget.

Cons of Renting

  • Lack of Equity
  • Limitations
  • Rental Payment Forever, Which is Likely to Increase
  • Possibility of Eviction


  • Housing costs will be part of your retirement budget, whether you rent or own.
  • Owning offers stability, tax benefits, and equity, among other perks.
  • Renting provides more flexibility and liquidity, and you’ll spend less money (and time) on maintenance.

Owning a home can be beneficial for homeowners over the long run, due to the amount of equity they can attain. Renters have nothing concrete to show for years of rental payments. However, for those who are looking to avoid the stress of homeownership, (upkeep, property taxes, renovations, etc.), renting might be a better option. It all depends on each person’s unique timeline, lifestyle, financial situation, and whether they’re working or retired.

For comments or inquires contact:

Alex Khodadad, Broker, CPA
1930 Contra Costa Blvd.
Pleasant Hill, CA 94523
(925) 705-1300
#walnutcreekrealestate #walnutcreekhomeforsale
#toprealtorwalnutcreek #walnutcreekrealty #topwalnutcreekrealestateagent
#concordrealestate #concordhomeforsale
#toprealtorconcord #concordrealty #topconcordrealestateagent
#pleasanthillrealestate #pleasanthillhomeforsale
#toprealtorpleasanthill #pleasanthillrealty #toppleasanthillrealestateagent

Posted in

Alex Khodadad, Broker

Call (925) 705-1300
DRE #01719021

Quick Search

Search For Your Dream Home

Want to Sell Your Home?

Find Out What Your Home Is Worth

Get a free comprehensive home evaluation

Have a Question? Contact Us

At Delphi Realty Group we help broker the purchase and sale of real estate in the East Bay Area. Looking to buy or sell a home? Work with the top real estate agents in Pleasant Hill, Walnut Creek, and Concord today.

Contact Delphi Realty Group