Recently, a headline caught our attention:
“Renting Costs a Lot Less Than Buying a Home, Especially in the West” (KSL.com)
At first glance, articles like this make it sound like renting is clearly the smarter move right now. And while there’s always some truth behind the headlines, there’s also a lot more to the story that doesn’t make it in.
If you’re trying to decide between renting or buying, you deserve a real comparison—not just big averages that miss the details.
Here’s a closer look at what’s really happening—especially here in Davis County.
🔍 Why Some Rent vs. Buy Comparisons Are Misleading
Most articles like the one above are comparing average or median rents to average or median home purchase prices.
But there’s a big problem:
- Rental units (especially in Salt Lake City) are often small apartments with fewer bedrooms and less square footage.
- Homes for sale are typically larger single-family homes designed for longer-term living.
So, when you lump everything together—without comparing size, bedrooms, or location—you get a gap that feels much bigger than what real buyers and renters experience.
🏡 A Real-World Example: North Davis County
Let’s take a real, apples-to-apples look:
Scenario: You want a 5-bedroom home between 2,000 and 2,500 square feet in North Davis County (about 20 minutes from Salt Lake City).
- Median Rent (per Rentometer): $2,645/month
Now, what would it cost to buy that same type of home?
- Purchase Price: ~$519,000
- Loan Type: 30-year fixed
- Down Payment: 5%
- Interest Rate: 6.25%
- Property Taxes: ~$2,300/year
- Private Mortgage Insurance (PMI): ~0.5% annual
- Homeowner’s Insurance: ~$900/year
👉 Estimated Total Monthly Payment: ~$3,514/month
📊 Breaking It Down
| Option | Monthly Cost |
|---|---|
| Renting (5 bed) | ~$2,645 |
| Buying (5 bed) | ~$3,514 |
👉 Difference: About $869 more per month to own vs. rent.
🧠 But Here’s the Bigger Picture
Yes, owning costs more upfront.
But it’s important to look beyond just today’s monthly payment:
| When You Rent | When You Buy |
|---|---|
| Rent likely increases every year | Fixed mortgage payment (30 years) |
| No equity | Builds equity over time |
| No tax deductions | Mortgage interest & property tax deductions |
| No control over the property | Freedom to customize, renovate, invest |
| Subject to landlord decisions | Full ownership and security |
Over time, owning builds wealth while renting builds someone else’s.
It’s also worth noting: $869/month isn’t “wasted” in homeownership—it’s buying you equity, appreciation, stability, and control.
🏡 Final Thoughts
It’s true that the gap between renting and buying has widened compared to a few years ago.
But it’s not as extreme as headlines make it seem—especially when you compare real homes to real rental options.
If you’re trying to figure out what makes the most sense for your family and your future, don’t just rely on averages and articles.
Let’s sit down, run real numbers for your situation, and explore your options.
Because smart decisions are made with clarity—not fear.
Next Step:
Thinking about your next move? Let’s connect for a real-world home buying plan that fits your goals.
