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How many years do you need to stay in a house for buying to beat renting?

Short answer

About 11 years for a US-median home ($420,000 vs $2,200 rent) at 6.5% rates under our default assumptions — shorter where rent is high relative to price, and 15+ years in high price-to-rent coastal metros. The ~9% round-trip cost (3% to buy, 6% to sell) must be recovered through equity and appreciation before buying pulls ahead.

What pushes break-even shorter or longer

Factor	Direction	Typical effect
Mortgage rate −1 point	Shorter	Often a year or more
Price-to-rent ratio under 15	Shorter	Rent is expensive relative to price
Price-to-rent ratio over 20	Longer	Common in SF, NYC, Seattle, LA
Appreciation +1 pt/yr	Shorter	Leverage magnifies gains on 10% down
Higher investment return	Longer	Renter's cash compounds faster

How to read this table

With 5 reference points in the "what pushes break-even shorter or longer" table, the fastest way to use this page is to find the closest row, take its direction, then stress-test it ±30% before you build a plan on it.

Context

Break-even is evaluated as if you sold at each year-end and paid selling costs. NAR reports median homeowner tenure around 10 years, so at today's rates a typical median-market owner sits right around break-even — but anyone likely to relocate within five years should test that scenario explicitly.

What moves this number

Financing terms

Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.

True operating expense ratio

Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.

Vacancy and turnover

One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.

Local regulation

Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.

Methodology

Assumptions (all editable in the calculators): $420,000 home (≈2025 US median, NAR), 10% down, 6.5% 30-year fixed (Freddie Mac PMMS range), 3.5%/yr appreciation and rent growth (long-run FHFA HPI / CPI shelter), 1.1% property tax, 1% maintenance, $1,900/yr insurance, 3% buy and 6% sell costs, 6%/yr investment return. Excludes mortgage interest deduction, capital-gains tax and PMI.

Assumptions and caveats

Returns exclude appreciation and principal paydown unless a row states otherwise.
Local tax, insurance and regulation can move these figures by several points in either direction.
This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.

Frequently asked questions