Nationwide, it takes six years to break even on homeownership, down from an all-time high of 8.4 years in 2023. However, that timeline is considerably longer in Miami at 9 years, according to new data from Zillow.
In its new Rent vs. Buy analysis, the group compared mortgage payments, property taxes, insurance rates and maintenance and closing costs for homebuyers with monthly rent and renters insurance costs to determine how long it takes for buying a home to be a smarter financial decision than renting.
Assuming a 20% down payment, U.S. homeowners stand to gain about $732,000 in housing wealth over the course of a 30-year mortgage, recouping the upfront costs of homeownership and reaping the benefits of improved housing affordability after just 6 years. During the same time frame, renters will have paid $1.44 million in rent and renters’ insurance. Even when accounting for the extra cash renters have at their disposal, that puts them about $1.14 million behind homeowners after 30 years.
The timeline is similar with a 5% down payment: the typical renter is about $1.3 million behind homeowners, who end a 30-year mortgage with about $555,000 in housing wealth, but break even after 5.75 years.
Buyers can break even faster than the national average in just 15 major U.S. metros. In the most optimal market — Columbus, Ohio — buyers are better off than if they’d rented in just 4.1 years.
Conversely, in several cities, buyers never break even: in New Orleans, San Francisco and San Jose, California, buying a home isn’t a smarter financial decision than renting, at least not over a 30-year period.
“For generations, Americans have been told that buying a home is the smartest financial move they’ll ever make. This analysis finds the truth is more complicated,” said Senior Economist Orphe Divounguy. “This research shows that both renting and buying can be smart decisions, just in different cities. The good news is that for buyers who are ready, conditions today are the most favorable they’ve been in years.”
Divounguy added that ZIP code selection could be the most important financial decision in a person’s life.
Overall, the data suggests that households should buy if they plan to stay more than six years, if their city has a quick break-even timeline or if stability and equity are a priority — but they should rent if they plan on moving in less than 6 years, if they life in an expensive coastal city or if they value flexibility and liquid cash.
“The rent-versus-buy decision in 2026 is as much of a lifestyle decision as a financial one,” said Zillow home trends expert Amanda Pendleton. “Do you want a backyard garden and a menagerie of pets? Or do you want to skip yard work entirely and have the flexibility to move on a whim? These types of lifestyle questions are as important as whether or not the math works in your favor.”