Is it better to rent or buy a home right now?

In the Austin real estate market, the rent vs. buy debate keeps coming up, especially with recent headlines claiming renting is the smarter financial move. Renting can look cheaper if you only compare monthly payments, but that misses a big piece of the picture: home equity. Here’s why equity changes the math on whether it’s better to rent or buy right now.

I am Robbie English, REALTOR and Broker for Uncommon Realty and I want to break this down.

The Numbers Behind the Headlines

Recent reports from Realtor.com and the National Association of Realtors (NAR) suggest renting is the cheaper option, especially for smaller homes. At first glance, median rent looks a lot lower than a median mortgage payment.

But look closer and the gap shrinks, especially for homes with more bedrooms. The median monthly mortgage payment is around $2,040, compared to $1,889 for a two-bedroom rental — a difference of about $151 a month.

Equity: Why It Matters

Here’s where the math shifts. When you rent, your payment covers housing and nothing else — beyond your deposit, that money is gone once you move out.

When you buy, your mortgage payment does two things: it covers your housing cost, and it builds equity. Every payment chips away at your principal balance, and as home values rise over time — as projected in the Home Price Expectations Survey (HPES) — your equity grows along with it.

What Equity Looks Like in Practice

Say you buy a $400,000 home this year. If you stay in it and home values track the HPES’s five-year projections, that investment could build $83,000 or more in household wealth over that time.

The Bottom Line

Renting can look appealing for the short-term savings, especially in a market like Austin where rental demand is high. But the right call depends on your full financial picture — income stability, long-term goals, and lifestyle all matter.

The real advantage of buying is the equity you build along the way, something renting can’t offer. If you want to think through the long-term numbers for your own situation, talk to a local agent who can walk through them with you.

There’s no single right answer in the rent vs. buy decision, but equity is worth weighing seriously before you decide in favor of homeownership.