Homebuyers

Why Putting Off Buying a Home May Cost You Serious Money

There’s no denying that buying a home requires careful planning, a big commitment, and financial resources.

But for those who have put off house hunting and are instead waiting for the “perfect” market, the issue isn’t just what it costs to buy a home today. It’s about what not buying a home could cost you in the long run.

Indeed, if your finances are stable and your plan is to stay put, renting involves some long-term financial trade-offs and hidden costs that can add up.

Here’s a look at how buying a home sooner rather than later may wind up saving you money over time.

1. Cost of not buying a home: Rent checks vanish and you’re not building equity

When you rent, you’re essentially helping your landlord build wealth—not yourself. Every monthly payment disappears into someone else’s pocket, with zero return.

When you buy a home, you will still write a monthly check, but your mortgage payment goes toward the principal, aka your ownership share. That’s called equity, and it grows over time, especially if your home appreciates in value.

Let’s do the math: If you put 10% down on a $350,000 home, you’ve already got $35,000 in equity. Add a modest 3% annual appreciation, and after just two years, your equity could be north of $55,000.

Meanwhile, paying $2,800 in rent each month adds up to $67,200 over two years, with no savings to show for it.

2. Cost of not buying a home: You can’t lock in rents

Mortgage rates can fluctuate multiple times a day. However, once you buy a home with a fixed-rate loan, your monthly principal and interest stay the same for the life of the loan.

Renters, on the other hand, have no such guarantee.

Say you’re renting for $2,500 a month now. If rent jumps 3% annually, you’ll be paying about $2,730 in just three years. That’s an additional $33,000 over a decade.

That kind of slow creep can squeeze your budget and make long-term financial planning harder.

While insurance costs, homeowner association fees, and property taxes may rise over time, the bulk of your mortgage payment is fixed. Owning protects you from that unpredictability.

“Rents will often increase, so you are hedging your bet against inflation and rising cost of living overall when buying a home,” said real estate broker Michelle Mumoli at New Jersey’s Mumoli Collective at Compass.

3. Cost of not buying a home: You’re missing out on tax breaks

The tax benefits of owning a home are often a nice bonus come April.

Depending on your situation, you may be able to deduct mortgage interest, property taxes, and certain closing costs. That can lower your taxable income and save you hundreds—or even thousands—each year.

Let’s say you pay $18,000 in mortgage interest and property taxes your first year of homeownership. If you’re in the 22% tax bracket, that’s nearly $4,000 back on your return.

4. Cost of not buying a home: You lose negotiating power in a buyer-friendly market

In today’s market, buyers have a rare moment of leverage. With housing stock rising and homes taking longer to sell in many regions, sellers are offering more concessions covering closing costs, reducing asking prices, and even agreeing to repairs that were once off the table.

That kind of flexibility doesn’t last forever. Waiting may mean entering a market that feels less forgiving and more expensive.

“Delaying also risks facing increased competition if rates drop, pushing home prices higher,” said Blake Zises of New York City’s Coldwell Banker Warburg. “Buyers can’t turn back time on price growth or missed equity.”

5. Cost of not buying a home: Waiting too long could stall savings

Maybe you’re planning to save up a bigger down payment. That’s smart in theory, but what if prices rise faster than your savings?

Say you’re saving $10,000 a year toward a future home. Meanwhile, the $500,000 home you want is appreciating at 3% annually. That’s an additional $15,000 the next year, more than your savings.

Even if you don’t buy your forever home right away, getting into the market lets you build equity that can be used later for a bigger place, college tuition, or even retirement.

Skipping the real estate market could end up costing you more than purchasing now. And the longer you wait, the more that future you’re saving for might slip just out of reach. 

There’s also something to be said for knowing you can paint the walls, put in a dog door, or plant a tree in your own backyard without asking anyone’s permission.

“Real estate is a real, hard asset that appreciates,” said broker Ellen Sykes of New York’s Coldwell Banker Warburg.