In this insightful episode of The Lofty Lender Homebuyer Education Series, I sat down with my longtime friend and colleague, Charlie, to tackle one of the most common (and most confusing) questions in today’s housing market: Should you buy or should you rent in 2025?
With mortgage rates, home values, and rental prices all heading in different directions, it's no wonder so many people feel stuck. In this conversation, Charlie and I break it down—honestly, practically, and with a focus on what’s right for you.
💡 Key Takeaways from Our Conversation
🏡 When is the Right Time to Buy?
Charlie and I agree—buying makes the most sense when it fits your budget and your lifestyle. The goal isn’t to time the market perfectly. It’s about stability. If you’re ready to put down roots, have some emergency savings, and feel financially secure, buying a home can help you build long-term equity and wealth.
We caution against stretching your budget too thin. Owning a home comes with maintenance costs and unexpected expenses. If you're scraping by to afford your monthly payment, you're not really in a good place to buy just yet.
🔁 The Case for Renting
Renting gives you flexibility and fewer financial responsibilities in the short term. If you’re unsure about your job situation, might relocate, or just aren’t ready to commit—renting is not a bad option. In fact, sometimes it’s the smarter choice.
But keep in mind: Rent doesn’t build equity. In five years, $114,000 in rent is money you’ll never see again. But with homeownership, that same payment helps pay down a mortgage and builds wealth through appreciation.
📈 The Power of Equity
We compared a common scenario: $1,900 in rent vs. $1,900 mortgage payment. That rent goes to your landlord. The mortgage payment builds equity over time—especially in Iowa’s hot entry- and mid-level housing markets where inventory is tight and appreciation is steady.
🛠️ Flips and Fixer-Uppers
Charlie emphasized the importance of quality when buying a flipped home. Superficial upgrades are easy to redo later, but shortcuts on plumbing, electrical, or foundation work can cost you big time.
📉 Waiting May Cost You
Charlie shared a real-world example of a couple who waited two years to buy, hoping for better rates. Rates barely moved—but home prices went up. That hesitation ended up costing them tens of thousands in missed appreciation.
🧠 We’re Advisors, Not Just Lenders
I explained that we’re not here to push someone into buying a home just to close a deal. We often tell clients to wait, rent, or work on their credit. Why? Because foreclosure ruins your future—and we want long-term success for our clients.
🧾 Your Bigger Financial Picture
Flexibility: Renting lets you pick up and move quickly. Buying means selling—or becoming a landlord—if you need to leave.
Diversification: Real estate adds a new layer to your portfolio. It’s a tangible, appreciating asset that can even become a rental later.
Payment Stability: Mortgage payments are fixed (aside from taxes/insurance). Rent usually increases annually.
Credit Growth: A well-managed mortgage is a major credit booster. It can help buffer against other slip-ups.
📊 Current Market Trends in 2025
Rates are slightly down from the 2023-2024 highs. Inventory is growing in Iowa. Rents have stabilized. And there are some incredible apartment amenities out there. But remember, those apartment perks are surface-level—homeownership is long-term stability.
🎯 Actionable Tips for You
Run the Numbers: Use our free Rent vs. Buy Calculator to compare monthly payments and long-term equity growth.
Talk to a Pro: Let’s have a conversation. If it makes sense to buy, we’ll help you get pre-approved. If not, we’ll help you make a plan.
Start Saving: Even if you’re not buying today, putting aside funds for a down payment now can make a huge difference later.
Bottom line: There’s no universal answer. But there is a right answer for you. And we’re here to help you find it—with honesty, empathy, and experience.
🎧 Catch the full episode by searching for The Lofty Lender with #TallMoneyMan wherever fine podcasts are downloaded.
Whether you're renting or buying—let’s make a plan that fits your life.
