The numbers don't lie
Is Buying a Home
Really the Best
Investment?
Conventional wisdom says homeownership builds wealth. But when you run the actual math, factoring in mortgage interest, maintenance, and opportunity costs, the answer might surprise you.
83%
Of your first year's mortgage payments go to interest, not equity
10% vs 4.4%
S&P 500 vs. housing annual returns since 1991
$15K+/yr
Average hidden costs on a $500K home: taxes, insurance, maintenance
Sources: NYU Stern/Damodaran (S&P 500), FHFA House Price Index (housing). Calculator assumptions for mortgage and cost figures.
How the Comparison Works
We model two parallel financial paths over your chosen time horizon
The Buyer
Puts down payment on a home. Pays mortgage, taxes, insurance, maintenance, and HOA every year. Builds equity as home appreciates and mortgage is paid down.
Net Worth = Home Value − Mortgage Balance
The Renter + Investor
Invests the down payment in the market. Pays rent each year. Any savings from lower housing costs also get invested. Portfolio compounds over time.
Net Worth = Investment Portfolio Value
Beyond the Calculator
Deep dives into the rent vs. buy debate
Investing
What a $100K Down Payment Could Become in the Stock Market
A $100,000 down payment has two possible futures: home equity or an investment portfolio. The gap between them is wider than most people expect.
Analysis
Should You Buy a House if You Might Move in 5 Years?
Transaction costs, front-loaded interest, and market risk make short-horizon homeownership a losing bet in most scenarios. Here's the math.
Deep Dive
The Hidden Costs of Homeownership Nobody Talks About
Your mortgage payment is just the beginning. Property taxes, insurance, maintenance, and opportunity costs add 2-3% of your home's value every single year.
Balanced View
House Hacking: When Buying and Renting Out Changes the Math
Buy a duplex, live in one unit, rent the other. House hacking is one of the few strategies where buying almost always beats renting. Here's how it works.
Ready to Challenge
Conventional Wisdom?
Plug in your numbers and see whether buying or renting makes more financial sense for your situation.
Try the Calculator