June is Homeownership Month — and if you’ve spent any time on social media or around well-meaning family members lately, you’ve probably heard some version of this: renting is throwing money away.
I’d like to respectfully push back on that.
Not because homeownership isn’t a wonderful thing — it can be. For the right person, at the right time, in the right market, buying a home is one of the best financial decisions they’ll ever make. But the idea that renting is always a waste and buying is always the smart move? That’s not financial wisdom. That’s a cultural script.
And cultural scripts deserve a closer look.
What the rent vs. own decision actually involves
Buying a home is not just a mortgage payment. The true cost of homeownership includes things that don’t always make it into the excitement of house hunting:
Property taxes and homeowner’s insurance add real dollars to your monthly cost — and both tend to increase over time. Maintenance and repairs run roughly 1–2% of your home’s value per year as a general guideline. That’s $4,000–$8,000 annually on a $400,000 home — and older homes often run higher. Ask me how I know. (1956 mill house owner, right here. 👋) HOA fees, if applicable, can add hundreds of dollars per month. Transaction costs — realtor commissions, closing costs, and fees on both ends — typically run 8–10% of the home’s value as a general guideline when you factor in buying and selling. And the opportunity cost of a down payment sitting in home equity rather than invested is a real consideration that often goes unexamined.
None of this means don’t buy. It means run the full math before you decide.
The questions worth asking first
Before you decide whether to buy, a few questions are worth sitting with honestly:
How long do you plan to stay? The general rule of thumb is that buying makes more financial sense the longer you stay. If there’s a real chance you’ll move within three to five years, renting may actually be the smarter financial choice when you account for transaction costs.
What does the rest of your financial picture look like? A home purchase shouldn’t come at the expense of an emergency fund, retirement contributions, or other financial priorities. A down payment that depletes your savings entirely is worth examining carefully.
What does the local market actually support? In some markets, renting and investing the difference genuinely outperforms buying. In others, the opposite is true. The answer depends on your specific situation — not a general rule.
Homeownership as part of a larger plan
When homeownership is the right move, it can be a meaningful part of a broader financial plan — building equity over time, providing stability, and giving your family roots in a community you love.
My husband Chris and I own our home in Fort Mill, and we love it here. But that decision was made in the context of our full financial picture — not in spite of it.
I’ll be transparent: on paper, it made zero sense. We left behind a 15-year mortgage at under 3% and more than doubled our mortgage balance on a 30-year at a rate above 6%. By the numbers alone, it was not the smart move.
But financial decisions are not made by numbers alone — and anyone who tells you otherwise is missing something important. The quality of life our family has living in town, being able to walk to the park, the farmers market, and Main Street — that is genuinely difficult to put a price on. It was a decision we made intentionally and sacrificially, with full awareness of the trade-off. And we would make it again.
That is the difference between a financial decision and a financial plan. A good plan doesn’t just optimize the math. It accounts for the life you actually want to live.
If you’re trying to figure out whether buying makes sense for your situation right now, that’s exactly the kind of conversation a Clarity Call is built for.
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Amanda Bateman is a CERTIFIED FINANCIAL PLANNER™ and the founder of Oak & Co. Financial in Fort Mill, SC. She helps individuals and families make financial decisions that actually fit their lives — not just the ones that sound right on paper.