The Real Benefits of Buying a Home This Year

Are you considering whether to continue renting or take the step to purchase a home in Wisconsin? Making this choice is important, and let's be honest: renting can seem easy, especially if buying a house seems out of reach.

However, a recent study from Bank of America (2024) shows that 70% of people who want to buy a home are afraid of the long-term effects of renting, such as not building equity and having to deal with rents going up.

Do you feel the same way? Are you worried about where renting might lead you in the future? Do you still have uncertainties about whether purchasing is within your current budget? In reality, getting a home can be excellent for your financial situation in the long run if you can make the numbers work.

Here are some reasons why you might want to buy a home in 2025 and how it can help you plan for the future.

Buying a Wisconsin Home Builds Wealth

When you buy a house, you can put the money you spend on rent into a long term investment instead. That's because, as the image below from the Census and the Department of Housing and Urban Development (HUD) shows, home prices tend to go up over time (Federal Reserve Bank of St. Louis, 2025):

Homeowners directly gain from rising home prices. That's because when you own a home, you build equity, which means that your share of ownership grows as you pay off your mortgage and the value of your home goes up. That makes your net worth go up too.

The National Association of Realtors (2024) says that may be why 79% of owners think buying a home is a good investment.

Renters Are Suffering From Rising Costs

Right now, with home prices and mortgage rates as they are, renting may seem cheaper in the short run. But the truth is that rent almost always goes up over time. You can see that in the numbers. Based on statistics from the Census, rents have gone up a lot over the years (U.S. Census Bureau et al., 2025). See graph below:

What this means is that if you decide to rent, your costs will probably go up every time you sign a fresh contract, and you won't get wealthier in the process. It might also be harder to save enough money to buy a house in the future because prices are going up.

The Long-Term Effects of Renting vs. Buying

Putting money into a house is like investing in your future. You will never get your money back when you rent, because it goes to your landlord and not you.

People who aren't ready or able to buy right now can rent while trying to figure out their path to homeownership. Many lenders and agents can help you make a plan so that it becomes easier to reach your goal. You will be building wealth and setting up for long-term financial success once you buy that house. It may seem easy to rent now, but it can't compare to the benefits of owning a home.

In Conclusion

Buying a home or knowing your path to do so should be a part of your strategy . A smart home buy is something you won't regret.

Would you like to see what starter houses are on the market in our area?

Let's talk today to talk about your choices.

References

Bank of America. (2024, May 18). BofA Report: 70% of Prospective Homebuyers Feel Renting Could be Detrimental to their Financial Future. Retrieved February 4, 2025, from https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/05/bofa-report--70--of-prospective-homebuyers-feel-renting-could-be.html

Federal Reserve Bank of St. Louis. (2025, January 27). Average sales price of houses sold for the United States. Retrieved February 4, 2025, from https://fred.stlouisfed.org/series/ASPUS

National Association of REALTORS®. (2024, November 4). Highlights from the profile of home buyers and sellers. Retrieved February 4, 2025, from https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers

U.S. Census Bureau, Callis, R., Holley, P., & Truver, D. (2025). QUARTERLY RESIDENTIAL VACANCIES AND HOMEOWNERSHIP, FOURTH QUARTER 2024 [Report]. U.S. Census Bureau. Retrieved February 4, 2025, from https://www.census.gov/housing/hvs/files/currenthvspress.pdf