Should You Rent or Buy?

The rent vs buy decision depends on: how long you will stay (buying typically breaks even after 5-7 years), local price-to-rent ratio (above 20 favors renting, below 15 favors buying), your down payment readiness, and the opportunity cost of that down payment invested elsewhere. Hidden costs of buying that renters avoid: property taxes (0.3-2.5% annually), maintenance (1-2% of home value per year), insurance ($1,000-3,000/year), HOA fees ($200-500/month in some areas), closing costs (2-5% when buying, 6-8% when selling), and PMI if under 20% down. In expensive cities like San Francisco (price-to-rent ratio of 35+), renting and investing the difference often wins financially. In affordable cities like Memphis (ratio of 12), buying is almost always better. The wild card: appreciation. If home values rise 3-5% annually, buying wins in most scenarios after 5 years. If values are flat or declining, renting wins for a decade or more. Run the numbers with your specific city data.