Should You Buy Or Rent In 2026? (The Numbers SHOCKED Us!)

In 2026, hosts Brian and Bo from the Money Guy Show crunch numbers on whether buying or renting a home makes more financial sense, challenging the traditional view of homeownership as the default path to wealth. They examine recent market shifts, compare costs, run a case study, and outline factors to weigh personally, emphasizing that current conditions often favor renting for those who invest the savings.

Post-Pandemic Housing Shifts

Home prices and mortgage rates spiked sharply after 2020, creating a "hockey stick" in charts from 1965 onward. Median existing-home sales price hit nearly $400,000 by early 2026, up about 50% in many areas over two to three years. Rates climbed from pandemic lows under 3% to around 6.4% for 30-year loans, far above the post-1970s decline. For a $400,000 home with 5% down, principal and interest jumped from $1,600 monthly at 3% to $2,400 at 6.4%—a 50% increase.

Affordability suffered: housing costs now claim 41% of median household income ($85,000), versus an ideal 25% or even the Fed's 30% threshold. Rent averages $2,000 monthly nationally (plus $13 for insurance), with half of renters spending over 30% of income. Rents rose 31% from 2020-2024 (peaking at 8% yearly), but homeownership costs grew faster due to prices and rates. In all 50 largest U.S. metros, monthly mortgage payments exceed rents by 28% on average, up from 18% in 2010.