(NewsNation) — Any want-to-be homeowner is faced with the age-old question — buy or rent?
In today’s landscape, the average homeowner has to stay in their house for seven to nine years to make owning a better deal than renting, says Zillow’s Amanda Pendleton.
But the dynamic of looking for a home has changed. Why? Higher prices, interest rates, a sluggish appreciation for a home’s value, and lastly … the booming stock market.
So, which is the better option? What are the top markets for buying over renting and vice versa?
Buying vs Renting?
Buying a home can come with it’s obstacles, but can also bring a ton of benefits.
“Buying a home to live in shouldn’t be viewed strictly as an investment, but homebuyers can capitalize on the equity that accumulates over time,” writes Bankrate.com’s David McMillin. “If your home value goes up, you’ll earn more when you sell.”
The option to buy a home can allow individuals to build up equity for the property, build up credit over time, allow for more stability financially and receive potential tax benefits.
“If you itemize deductions, you could lower your federal tax liability by taking the mortgage interest deduction,” McMillin said. “Talk to a tax professional about whether the mortgage interest deduction — the first $750,000 in mortgage interest for couples filing jointly; $375,000 if you’re filing solo — will make an impact on your bottom line.”
Prospective buyers might also have a favorable advantage as opposed to two or three years ago, as mortgage rates won’t go anywhere near 2-3%. Those buyers who purchase when interest rates are higher can refinance if they drop.
On the other side, renting may be more feasible for a person because of the mortgage rates being relatively high and affordability for properties throughout the country.
Renting a home can be advantageous for people who only see themselves in that specific area for a short amount of time.
“Even if you think you might want to live in an area for an extended period, it might make sense to rent before buying,” said BB Living President Brandon Lombardi. “Renting gives you a really great opportunity to get to know a city.”
Beyond location, renting provides people the opportunity to spend less upfront regarding costs, the easier option of getting approved for a home than a mortgage, and sharing no responsibility for maintenance costs or property taxes.
Which US markets are better for buying?
As of 2025, the median price nationwide for buying a home averaged out to $435,300. Now, if a person is thinking of buying a home, there are certain areas of the country that provide better options.
The hottest housing markets ranked from first to fifth include:
Omaha, Nebraska – 76.2
Austin, Texas – 72.3
Houston – 72.1
Charleston, South Carolina – 71.6
Denver – 71.5
“Last year saw historically low activity for first-timers, with the group accounting for only 24% of successful homebuyers,” said Realtor.com’s Danielle Hale.
“While home prices remain high and mortgage rates are forecasted to stay above 6% throughout 2025, the year is expected to see more inventory hit the market — a silver lining for shoppers who will see more or less choice depending on where they are.”
The demand for buying a home has rebounded in key markets, and it has been driven by factors such as improving wage growth, increased housing inventory and some moderation in mortgage rates from their peak levels.
Which US markets are better for renting?
In recent years, the nation’s long-term rental market has been unpredictable due to a combination of surging demand, limited housing supply, and fluctuating economic conditions.
Having said that, Miami and markets in the Midwest have become the most go-to when looking for a home.
“The national occupancy rate has edged down from 93.7% to 93.4%,” wrote RentCafe.com Veronica Grecu.
“Vacant units are also staying on the market slightly longer — 40 days, on average, versus 39 days last summer — while competition among renters has held steady, with about nine apartment-hunters vying for each available unit.”
The Sunbelt region of the country has also become popular among renters due to its favorable climate, booming economies and attractive cost of living.
