Renting vs. Buying in 2025: What First-Time Buyers Need to Know
As we head deeper into 2025, many renters are wondering if this is finally the year to stop renting and start building equity by purchasing a home. With fluctuating mortgage rates, rising rents, and a still-competitive housing market, it can feel overwhelming. But the good news is: you don’t have to figure it out alone.
At Hops ‘N Homes, we help first-time homebuyers make informed, confident decisions—all while enjoying a local brew in a relaxed, no-pressure setting. So, let’s break it down.
The Economic Landscape in 2025
Mortgage rates have started to stabilize after several unpredictable years, and while home prices are still high in many markets, rent prices haven’t slowed either. In fact, in cities like Boise and Salt Lake, rents have outpaced wage growth for the past three years.
What does this mean? If you’re planning to stay in your area for more than 3–5 years, buying could actually be more affordable long-term than continuing to rent.
Five-Year Cost Comparison
Let’s compare renting vs. buying over a five-year period:
Renting
- Monthly rent: $1,800 (with an average 4% annual increase)
- Total paid over 5 years: $116,770
- No equity gained
Buying
- Home price: $400,000
- Down payment: 3% ($12,000)
- Mortgage: ~$2,500/month (including taxes and insurance)
- Total paid over 5 years: ~$150,000
- Equity gained: ~$50,000+ (depending on market appreciation)
While the monthly cost of homeownership may be higher upfront, a portion of that money goes back into your future in the form of home equity.
Intangibles That Matter
Renting provides flexibility, which is great for short-term life plans. But buying offers stability and an opportunity to grow wealth. When you own your home, you’re protected from rent hikes, you can personalize your space, and you build equity over time.
How to Evaluate Your Readiness
Not sure if you’re ready? Ask yourself:
- Do I have a steady income and job stability?
- Is my credit score at least 620?
- Do I have $5,000–$15,000 saved?
- Am I planning to stay in the area for 3+ years?
If you answered yes to most of those, you’re probably closer than you think.
Join Us for a Drink and a First Time Home Buyer Class
Still unsure? Come grab a beer and learn more at one of our free, no-pressure first-time homebuyer classes. You’ll meet real estate professionals, get your questions answered, and leave with a better understanding of what homeownership could look like for you.
Your path to owning a home doesn’t have to start in a bank—it can start at a brewery. Register for our next event today!