Smart Money 101: Should You Buy or Rent in Your 20s and 30s?

Young adults comparing pros and cons of renting vs buying a home

VS.

Warren Buffett once said, "The best investment you can make is in yourself."
But if you're in your 20s or 30s trying to build long-term wealth, there's one question you can’t avoid: should you buy a home or keep renting?

Think of it like this—renting is fun, flexible, and low-maintenance. Buying is serious, long-term, and full of responsibilities. It’s kind of like comparing a weekend fling to a committed relationship. Both can be great, but one might help you build your future.

My $40,000 Realization

A few years back, I was renting like everyone else—comfortable apartment, decent location, but no equity, no long-term gain. Then one day, I looked at my bank records and realized I had spent over $40,000 on rent in five years. Just… gone.

That was the moment it hit me. I wasn’t investing in my future. I was paying someone else's mortgage.

If that sounds familiar, you're not alone. According to CNBC, the median U.S. home price has jumped nearly 50% in the last 10 years. Meanwhile, Forbes reports that Millennials who bought homes in their 20s have, on average, $100,000 more in net worth than those who kept renting.

Why Buying a Home Can Be a Game Changer

After months of Googling things like “how much money do I need to buy a house” and “can I afford a home in my 20s,” I realized something surprising: homeownership wasn’t just for rich people. I ended up buying a small, slightly outdated condo—and it completely changed my financial direction.

Here’s what happened:

Every mortgage payment built equity. Instead of sending money into a black hole, I was slowly building ownership.
My costs became predictable. While friends dealt with yearly rent increases, my monthly mortgage stayed the same.
Freedom was mine. No landlord rules. I could paint walls, own a dog, or make renovations on my terms.
My condo appreciated in value. A few years later, I sold it and used the profit as a stepping stone for my next investment.

Was it perfect? Definitely not. I had to handle unexpected repairs and dip into my emergency fund more than once. But looking back, it was one of the best money moves I’ve ever made.

When Renting Still Makes Sense

Let’s be real: buying isn’t for everyone, and it’s not always the smartest move—especially if you're not financially or emotionally ready.

Here’s when renting is the better play:

You need mobility. If you're unsure where you’ll be in the next year or two, the flexibility of renting is hard to beat.
You’re still building your savings. A down payment, closing costs, and repairs can eat up cash fast. If your emergency fund isn't solid, buying might stretch you too thin.
You want peace of mind. If the idea of dealing with burst pipes or leaky roofs makes your blood pressure rise, renting may be the stress-free option—for now.

Still, long-term renting rarely builds wealth. It’s kind of like living in an Airbnb full-time—convenient, but you’re always paying for something you don’t own.

Why You Should Buy as Soon as You Can (If You’re Ready)

If you’re asking whether to buy your first home in your 20s or 30s, here’s my advice: buy when you can—without overextending yourself. Don’t wait for the “perfect time.” Just plan smart.

Why?

Inflation works in your favor. The cost of living doubles roughly every 12 years, but a 30-year fixed mortgage stays the same. Over time, your payments feel smaller while rent keeps climbing.
Your first home is your launchpad. It doesn’t have to be forever—just your starting point.
Owning builds wealth. According to the Wall Street Journal, homeowners have 40 times the net worth of renters by retirement age.

Buying a home forces you to build better financial habits. You’ll budget tighter, spend smarter, and think more long-term. It’s not just a house—it’s momentum.

So… Buy or Rent?

Only you can answer that. But here’s what I know: