The Truth About Renting vs. Buying in Your 20s

By Dillon Forstberg

With over five years of experience in the real estate industry, I’ve had the privilege of helping hundreds of clients successfully navigate their journey to the closing table—smoothly, confidently, and for top dollar.

Is buying better than renting a home in your 20s? A lot of young adults think renting is the only affordable option. But the truth is, month after month, rent payments disappear with nothing to show for it, while your landlords build wealth. On the other hand, buying a home even in your 20s can set you up far better for the future. Here’s a closer look at renting vs buying.

Why renting can cost more. Renting might feel easier, but it doesn’t build anything tangible. Paying $1,700 a month for five years can total over $100,000 with nothing to show for it. Meanwhile, the landlord benefits while your money is gone.

How owning makes a difference. Owning a home might cost more monthly, but it builds equity over time. A mortgage with moderate interest lets you gain tens of thousands in equity in just a few years. Plus, tax breaks and stable payments keep more money in your pocket, and you’re investing in an asset that could grow in value.

You don’t need to be rich. The key is having the right strategy. First-time buyer programs, down payment assistance, and smart timing make homeownership achievable, even in your 20s. In fact, plenty are already making the switch successfully.

If you know the rules and plan carefully, you can start building wealth through homeownership now. I can help you with that. Schedule a call with me, and I’ll run the numbers so you can see your options. Let’s make it work.