Owning a Home vs Renting a Home: Compare Costs With Our Rent vs Own Calculator
Last Updated: April 14, 2026
At the time of the latest U.S. Census in 2024, the median monthly rent in Indiana was $1,104.[1] At the same time, the total monthly cost for homeowners was reported at $1,116.[2]
So, we could say that renting is $12 less expensive, on average, than owning. But, that’s an oversimplification. There are so many costs and payoffs that are hard to quantify.
For example, homeowners tend to need more money set aside for emergency repairs and appliance replacement. Meanwhile, some renters feel like they’re paying someone else’s mortgage. Neither lifestyle is better or worse than the alternative, but each comes with its own pros and cons.
In this article, explore the benefits of owning a home vs renting, the drawbacks, how to use our Rent vs Own Calculator. By the end, you shouldn’t have any doubts about which option is right for you.
What are the Benefits of Owning a Home vs Renting?
In general, renting a home is considered more flexible and comes with less upfront cost than owning. Meanwhile, owning your house can be more beneficial for building long term stability and wealth. Your finances, lifestyle, and goals might make one or the other better for you.
The Benefits of Renting a Home
Renting suits some people perfectly, depending on what they want and need.
Some of the key advantages of renting are:
● Flexibility and mobility
● Lower upfront costs
● Fewer responsibilities
● Less financial risk
Leases are usually between 6-12 months, compared to mortgages, which can take decades to pay off. So, renting can make it easier to move for a job, relationship change, or simple change of scenery.
When you move into a rental, you usually only need to pay the first month’s rent and a security deposit. This means that you’ll usually pay a lot less to get into a place. When you buy, you usually need a large down payment.
Unless they are at fault for breaking something, renters aren’t responsible for most repairs in a rental unit. The landlord or homeowner, however, must pay for a majority of repairs and home maintenance.
Plus, renters never have to worry about losing their money in price drops or economic crashes. This is a risk all homeowners take. Moreover, late rental payments may not impact your credit score while late mortgage payments can.
You might also like: Saving Money at Home: 15 Money Saving Tips to Cut Costs
The Benefits of Owning a Home
For some people, buying a house is the best solution—it can be the ultimate step on the path to financial freedom.
Some of the advantages of owning a home vs renting are:
● Equity and wealth building
● Stability
● Control
● Potential long-term savings
With every mortgage payment, you build your stake in home ownership. Over time, your home may also increase in value. The money you pay toward a home can quickly turn into equity, which is the market value of your home minus the outstanding balance of your mortgage. Renters don’t build equity.
As a homeowner, you can’t be “evicted” from your home as long as you keep paying the mortgage. In the meantime, renters have to worry about being kicked out if the house sells or the landlord increases the rent.
When you own a home, you also can customize the home with remodels, paint, and the landscaping of your choosing. Most renters don’t have this level of control over their space.
In many markets, owning can become cheaper over time. This can be especially true for those who want to stay in the same place over a long period of time.
Recommended: First-Time Homebuyer Checklist: Your Step-by-Step Guide to Homebuying
The Downsides of Renting a Home vs Owning a Home
While each has its clear advantages, renting and owning also have their drawbacks.
Some of the drawbacks of renting a home are:
● You never build home equity. Instead, your money goes toward the landlord’s wealth.
● You have limited control over decor, pets, and home improvements.
● Rent can increase over time, and you may be asked to leave when the lease is up.
But, this doesn’t necessarily mean that owning is the only way to go.
Some of the drawbacks of owning a home are:
● You’ll pay higher costs upfront. In most cases, you will need money for a down payment, closing fees, and an inspection.
● You’ll be responsible for property taxes, insurance, maintenance, and any HOA fees.
● When you’re ready to sell the home, even this will take time and money.
● You will be at risk if the housing market collapses or a repair cost is unexpectedly high.
Check this out: Top 5 Homeownership Tips
Find the Best Option For You With Our Rent vs Buy Calculator
If you’re still not sure which is the right move for you, just do the math!
Centier’s Rent vs Own Calculator can help you determine the actual difference between renting and buying a home.
Here's how it works:
- Enter your renting costs.
- Enter your buying costs.
- Enter some future assumptions.
- Hit "Calculate."
That's it! It's a simple way to see if buying a home makes more financial sense than renting.
Build Financial Freedom On Your Terms with Centier
There are some situations where renting might be better:
● You expect to move in five to seven years.
● Your income is unstable.
● You don’t have enough savings for a down payment.
● You prefer to build your savings elsewhere.
And, buying a home might be a better fit if:
● You plan to stay in one place for a decade or more.
● You have a steady income and solid down payment.
● You want stability and long-term asset growth.
Either way, Centier Bank is here to help with a range of financial products, tools, and expertise.
To talk with us about the next right financial move, book an appointment with a Centier banker today.
Sources:
[1] https://data.census.gov/all?q=rent+vs+own+a+home+in+Indiana