Valuetainment Buy or Rent a House - The 7 Rules No Realtor Will Tell You
Oct 29, 2025
Feeling unsure about buying a home? Discover seven key rules that can guide you on whether to buy or rent without regrets. Explore the latest data showing that buying is now 21% more costly than renting. Learn how historic trends and rising construction costs affect housing choices. Patrick Bet-David shares critical formulas for decision-making, including how life stages and credit scores impact your options. Unpack the political landscape's role in housing desirability, and identify where insurance costs vary wildly. Equip yourself with knowledge to make empowered choices!
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Buying Is More Expensive Than Renting Now
- Buying is currently about 21% more expensive than renting, reversing the situation from 2015 when buying was 22% cheaper.
- The rent-versus-buy gap has flipped in less than a decade, changing the basic affordability calculus for many buyers.
House Prices Outpaced Income Dramatically
- Median house prices have risen much faster than incomes, moving from ~2.5x income in 1960 to ~8–8.5x today.
- This rising price-to-income ratio explains why many households struggle to qualify for median-priced homes.
Builders Favor Bigger Homes Over Small Ones
- New home construction shifted toward much larger houses: four-bedroom builds rose from ~20% to 48% while small homes dropped to ~7%.
- Builders are producing fewer small, affordable homes despite lower household sizes and birth rates.