Renting vs. Buying:

A Student’s Guide to Making the Right Choice

Overview

Deciding whether to rent or buy is one of the biggest financial decisions students and young adults face, and social media doesn’t always make it easier. You’ve probably seen TikToks saying “you should buy a house in your 20s” or “renting is just throwing money away.”

But the truth? There’s no one-size-fits-all answer. Renting and buying both have real benefits and real tradeoffs. The right choice depends on your budget, plans, lifestyle, and the duration of your stay.

This guide breaks down the essentials so you can make a choice that actually fits your life.

🏠 Renting: The Flexible, Low-Commitment Option

Renting is usually the easiest way for students and young adults to live independently. It gives you flexibility, lower upfront costs, and a simple month-to-month routine.

Why Renting Can Make Sense

  1. Lower Upfront Costs: Renting usually requires first month’s rent + a security deposit. Compared to a down payment on a home, this is significantly cheaper and more realistic for most students.

  2. Predictable Monthly Expenses: Your rent stays the same for your lease term, and many places include heat or water. You also don’t have to worry about surprise repairs or maintenance fees.

  3. Flexibility to Move: Students often move for co-ops, internships, grad school, or new opportunities. Renting makes relocating easier and less stressful.

  4. No Responsibility for Repairs: If the sink leaks or the furnace dies, it’s your landlord’s job and not yours (thankfully).

When Renting Might Not Be Ideal

  • Rent can increase yearly depending on your lease

  • You can’t customize your space freely

  • You aren’t building equity over time

For short-term living or uncertain timelines, renting is often the better fit.

🏡 Buying: Stability, Equity, and Long-Term Commitment

Buying a home is a huge milestone, but it also comes with major financial responsibility. It’s not just the mortgage; it’s the maintenance, the repairs, and the long-term commitment to staying in one location.

Why Buying Can Make Sense

  1. You Build Equity Over Time: Every mortgage payment helps you own a little more of your home. Over several years, this can become a meaningful investment.

  2. Stable Monthly Payments: Fixed-rate mortgages stay the same for years, unlike rent, which may rise yearly.

  3. Freedom to Customize Your Space: Paint the walls, have pets, renovate your kitchen, no landlord permission required.

Why Buying Might Not Be Ideal

  • Large Upfront Costs

  • You’re Responsible for Everything

  • You Need to Stay for 5–7+ Years

  • You Need Strong Credit & Savings

Buying can be a smart long-term move — but only when your finances and future plans support it.

💸 The Real Question: How Long Will You Stay?

A good rule of thumb:

Renting is better for short-term stays (0–5 years).
Buying may make sense for long-term stays (5–7+ years).

Why?

The upfront costs of buying don’t pay off unless you hold the property long enough to benefit from appreciation and mortgage repayment.

Students often move multiple times before settling, so flexibility usually wins during school years.

📋 Key Costs to Compare

Here’s a quick overview of what you’ll pay in each scenario:

Renting Costs

  • Monthly rent

  • Tenant insurance

  • Utilities (varies by landlord)

  • Parking (sometimes)

  • Annual rent increases

Buying Costs

  • Down payment (5–20% of purchase price)

  • Closing costs (1–4% of purchase price)

  • Mortgage payments

  • Property taxes

  • Home insurance

  • Utilities

  • Repairs + maintenance (typically 1–3% of home value per year)

  • Condo or HOA fees (if applicable)

Buying is much more financially complicated, and much more expensive upfront.

🧭 Which Option Fits You Best?

Here’s a simple way to think about it:

Choose Renting if:

  • You want flexibility

  • You’re unsure where you’ll live after graduation

  • You’re on a student budget

  • You want predictable monthly expenses

  • You don’t want to worry about repairs or maintenance

Choose Buying if:

  • You plan to stay in the same city long-term

  • You have strong savings and credit

  • You want to build equity

  • You’re ready for the responsibilities of homeownership

Most students will find that renting fits their lifestyle better, and that’s completely okay!

📝 Final Thoughts

There’s no “right” answer to renting vs. buying, only the answer that fits your situation. Your finances, your timeline, and your goals matter more than what anyone on TikTok says.

If you want help comparing your options, understanding your real monthly budget, or planning your financial move after graduation, we’re here to help!

Contributors: Jason Tran, Kyle Le

December 1st, 2025