Rent or buy, year by year

Start year. The year sets the typical price, rent and mortgage rate below.

Home price. Empty means the median existing home of that year: US$396,800 in January 2026 (National Association of Realtors), earlier years carried back with the Case-Shiller index.

Rent a month for a comparable home. Empty means the typical US rent of that year: US$1,962 in July 2026 (Zillow). That covers all rentals, mostly apartments; a comparable house often rents for more.

Mortgage rate. Empty means that year’s average 30-year rate (Freddie Mac). On October 8, 2026 it was 7.40%.

Down payment. Under 20% adds mortgage insurance.

State. Sets the property tax to that state’s median rate (Census, 2024).

Years to compare. How long you stay before you sell.

Tax return. Counts the income tax saved by deducting mortgage interest and property tax (2026 federal rules).

Buying costs. Of the price: title, lender fees, points.

Selling costs. Of the sale price: agents, transfer taxes.

What invested money earns a year. After tax. Whoever pays less each year invests the difference.

Year by year. Dollars of each year. Wealth is what each would have if the owner sold at the end of that year, paying selling costs and the loan.

Side by side. Each year the owner pays the loan, property tax, insurance (0.5% of the value), upkeep (1.5%) and any mortgage insurance; the renter pays rent and renter’s insurance (US$180). Whoever pays less invests the difference at the same return, and the renter also invests the cash the buyer spent on day one. Income tax and refinancing are left out unless you turn on itemizing.