7 Reasons Renting May Be Smarter Than Buying in 2025, According to Humphrey Yang

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You’ll often hear finance experts recommend buying over renting for those who are financially ready. But a Gallup poll found that only 30% of non-homeowners planned on purchasing a property within five years, often citing unaffordability. This isn’t surprising given the nearly $2,700 median monthly mortgage payment Redfin reported in July 2025.
While buying has perks, financial YouTuber Humphrey Yang discussed in a recent video seven reasons you might want to keep renting.
Better Job Mobility
“When it comes to owning a home, you’re basically planting your roots in that location,” Yang said. “And when that happens, you’re going to be way less flexible when it comes to moving locations for, say, a new job or perhaps a different opportunity.”
The flexibility of renting is especially an advantage in a time like now, when layoffs are common and moving far away might be your best bet for landing a new role quickly. Yang explained it would be a bigger hassle for a homeowner since they’d need to rent their old place out or sell, which takes time.
No Homebuyer Regret
A 2025 Clever Real Estate report found that 65% of respondents experienced homebuyer regret due to various financial, property or location issues.
Yang discussed how the currently higher mortgage rates contribute since they impact mortgage payment affordability. He also explained how some people regret buying due to needed renovations and repairs.
When you rent, you don’t have to worry about an expensive purchase you might later regret and possibly lose money on if you sell too soon. Plus, expensive repairs won’t come out of your pocket.
Fewer Hidden Costs
Beyond covering repairs and maintenance, you can experience many hidden homeowner costs, such as property taxes, insurance, homeowners association fees and higher utility bills. Yang showed how these can quickly add up to many thousands of dollars per year, depending on the home and location.
He added that renters have not only fewer hidden financial costs but also fewer decisions to worry about. For example, a landlord will handle repairs, so renters won’t have to compare quotes or find a suitable contractor. Plus, they won’t have to monitor property values.
Potentially Higher Performance With Stocks
Historical annual investment returns, as cited by the NYU Stern School of Business, suggest that real estate typically doesn’t offer higher average returns than stocks. For example, the S&P 500 annual return was 24.88% in 2024 compared with 4.24% for real estate.
Yang noted that the case could be different for properties in certain locations. But breaking even or losing money is a reality for some homeowners.
“So that’s why there’s a strong argument for just renting and investing your potential down payment,” he said.
Better Affordability
Yang said that renting may simply be the cheaper option overall, especially in high-cost areas. That’s after you consider your potential mortgage payment, which may be far more than the $1,790 median rent price Redfin reported, and all the hidden expenses of homeownership.
Since affordability can depend on the location, you can try plugging in the numbers for renting versus buying into Freddie Mac’s calculator to compare the costs.
Unwarranted Social Pressure
Yang discussed how cultural perceptions of owners versus renters can lead to making the wrong choice based on emotions rather than your finances and personal needs.
For example, some people believe that renting is wasteful and that buying a house represents adulthood and wealth. Others feel pressured to buy homes since it’s seen as the norm in their families, even though affordability has changed over the years.
“There is no shame in renting if that’s what you prefer, especially when you’re saving thousands of dollars per month, have complete flexibility and are able to invest the difference in higher-returning assets,” Yang said.
No Renovation Costs
A March 2025 Clever Real Estate study found that higher home repair and maintenance costs were causing stress for 89% of homeowners, and 30% with remodeling or renovation plans were delaying their projects.
Yang gave an example of how a $5,000 renovation can easily lead to more projects totaling $30,000. Unless you have substantial savings, you may need a loan, which comes with interest and another payment in your budget.
While renting means less control over how you update your space, it may be the smarter move since you won’t have to pay for any renovations. Plus, you always have the option to move to a new rental with the features you want.
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