Should you rent or buy?

It's the most important financial decision most people make. Let's look at your real numbers — not generic advice.

It depends — but probably sooner than you think.

I won't tell you buying is always better. For someone moving in 12 months, renting makes sense. But for most people in Baton Rouge who plan to stay 3+ years? The math almost always favors buying — and the gap widens every year you wait.

Here's what most people miss: your rent will go up. Your mortgage won't. In 10 years, you're either sitting in a home you own — worth more than you paid — or you've handed your landlord $120,000+ with nothing to show for it.

Let's clear up the myths

Renting is throwing money away.

Reality: Partly true — but buying also has costs that don't build equity (interest, insurance, taxes, repairs). The real question is which option builds more wealth over your specific timeline.

You need to stay 30 years to make buying worth it.

Reality: In most Louisiana markets, the break-even point is 3–5 years. After that, you're building equity every single month while your neighbor's rent goes up.

Renting gives you flexibility.

Reality: True — but that flexibility has a price. The average renter loses $500–800/month in wealth they could be building. Over 10 years, that's $60,000–96,000 in net worth you don't have.

It's cheaper to rent right now.

Reality: Sometimes true short-term. But your rent will increase — your mortgage won't. A fixed-rate mortgage is the only housing cost that stays the same for 30 years.

How buying builds wealth renters never see

Appreciation

Homes in the Baton Rouge area have appreciated an average of 3–5% annually over the past decade. On a $250,000 home, that's $7,500–12,500 in added value every year — without doing anything.

Equity from payments

Every mortgage payment chips away at your balance. After 5 years on a $225,000 loan, you've paid down roughly $15,000–20,000 in principal — money that's yours.

Forced savings

A mortgage is one of the few financial products that forces you to save. Most renters don't invest the difference — they just spend it. Homeownership makes building wealth automatic.

The number that should make renters pause

The average homeowner in the U.S. has a net worth of $396,200. The average renter has a net worth of $10,400. That's a 38x difference — and homeownership is the single biggest reason. Owning a home is still the most reliable path to building middle-class wealth in America.

Source: Federal Reserve Survey of Consumer Finances

Run your rent vs. buy comparison

Adjust the numbers to match your situation.

$1,400
$500$4,000
3%
0%8%

If You Buy

$250,000
10% · $25,000
7.00%
3.5%
Over 7 years

Buying saves you

$54,365

vs. the alternative

Total Rent Paid

Including 3%/yr increases

$128,729

Total Buy Costs

Down payment + all payments

$187,352

Equity Built

Appreciation + principal paid

+$112,988

Net Buy Cost

Total paid minus equity

$74,364

Break-Even Point

Year 1

After this, buying wins every year

Check What I Qualify For

See what you could qualify for today

Down payment assistance, first-time buyer programs, and lender connections — all free through Adreanne.

👋 Thinking about buying in Baton Rouge?

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Hi! I'm Adreanne's assistant. Are you looking to buy, sell, or just find out what you qualify for? I can help right now!

AI assistant · Not legal or financial advice