Rising Rent Costs vs. Homeownership

Why Buying a Home Could Save You Money

Across the country, people who lease their homes are feeling the pinch as rent keeps climbing year after year. Every time there is an increase – which for most is annually – it can feel like your hard-earned money is slipping away. But there’s a brighter path. At Gershman Mortgage, we want to help you explore how owning a home could bring stability to your monthly budget and put you on a track toward long-term financial peace.

Homeownership isn’t just about having a place to live – it’s about gaining a sense of security, building equity, and turning your money into something that works for you, not against you.

The Reality of Rising Rent

Renters across the country are feeling the squeeze as rent prices climb year after year. Nationally, the average monthly rent reached $1,607 in February 2025, marking a 0.4% increase from the previous year according Rent.com and Rentometer. However, this national average masks significant regional disparities.

For instance, in the Midwest, single-family rents surged by 9.2% year-over-year in the third quarter of 2024, three times higher than the national average. Cities like Detroit experienced a 6.1% increase, while smaller cities such as Flint, MI, saw rents rise by 24%.

Even modest annual rent hikes can accumulate significantly over time. For example, a $10 increase per month adds up to $120 annually. Over five years, that’s an extra $600 spent without building any equity or long-term value.

Beyond the monetary impact, renters often face the “heartache factor”:

Unpredictable Costs: Annual rent increases can strain budgets and complicate financial planning.

Frequent Moves: Rising rents may force tenants to relocate more often, disrupting routines and community ties.

Limited Control: Renters have little say over property maintenance or the ability to personalize their living space.

At Gershman Mortgage, we understand these challenges and are here to help you explore how homeownership can offer stability and long-term financial relief.

How Homeownership Offers Stability – and More

In contrast to the continuously rising rent and the uncertainty that comes with it, homeownership offers stability. With a fixed-rate mortgage, your monthly payments remain predictable, unlike rent that can rise year after year. Instead of sending money to a landlord, each payment helps you build equity in your own home – an investment in your future.

On top of that, owning your home gives you the freedom to make it truly yours, from decorating to renovations, giving you control and a sense of security that renting simply can’t match.

Beyond Stability, Homeownership Offers Other Distinct Advantages

Tax advantages such as deductions for mortgage interest and property taxes can help you save money each year.

Long-term wealth building through equity and appreciation – as each mortgage payment increases your equity and the property may appreciate over time.

Home appreciation – even if it’s modest – can make a significant difference, often outweighing years of rising rent and turning your home into a financial asset rather than just a place to live.

Overcoming the Barriers to Buying a Home

If you believe homeownership is out of reach because you won’t qualify or need a 20% down payment, think again. These are common misconceptions. The fact is, there are a variety of mortgages designed to fit different budgets and credit situations, making homeownership more accessible than you might think.

At Gershman, we have first-time homebuyer programs and flexible loan options. And our team is well versed in guiding borrowers throughout the process, step by step.

Lifestyle Considerations

Owning a home isn’t just a financial decision – it’s a lifestyle choice that can bring stability and peace of mind. For families, it provides a steady foundation for children and a space for planning for the future. Instead of the uncertainty of rental leases, homeownership gives you a place to truly “grow roots” in a community. And beyond the practical benefits, there’s the pride and emotional value that comes with having a home to call your own – a place where you can celebrate milestones, create lasting memories, and feel a true sense of belonging.

How Gershman Mortgage Can Help

For 70+ years, Gershman Mortgage has helped families transition from renting to owning. It’s something we’re both proud of – and good at. We offer a comprehensive suite of loan products that are designed for first-time buyers and beyond. And best of all, we provide personalized guidance from start to finish.

With rents rising across the U.S., it’s easy to feel like your hard-earned money is slipping away. Homeownership can help you break free from that cycle, offering financial stability, the chance to build equity, and a place to truly call your own.

Take the first step toward a brighter, more secure future by reaching out to us for a free consultation or pre-qualification. Stop paying more for less – contact Gershman Mortgage today about your path to homeownership.

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About Gershman: Communities, families, and homes are at the heart of what we do at Gershman Mortgage. Our founding principles are based on the core values of honesty, integrity, the entrepreneurial spirit, and putting our customers first. We are passionate and committed to customer service and strive to ensure that we exceed the expectations of our customers. We are a customer-centric company devoted to creating and maintaining long-lasting relationships.

NMLS #138063 16253 Swingley Ridge Road Suite 200 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender. Serving borrowers in: Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Wisconsina, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Wisconsin