NerdWallet's Smart Money Podcast
NerdWallet's Smart Money Podcast

Renting vs. Buying a Home: Can HOA Fees Be Worth the Money?

September 28, 2026

AI Summary

5 min read

Renting vs. Buying: When HOA Fees Change the Math

The conventional wisdom that renting is "throwing money away" while homeownership is a sure path to wealth gets turned on its head when you factor in condo fees, especially in expensive markets like New York City. NerdWallet wealth advisor Ryan Sterling walks through why the decision is far more nuanced than most people assume—and why the emotional pull of homeownership can be worth honoring even when the numbers don't favor it.

The Real Cost of Owning

Sterling pushes back hard on the idea that renting is wasted money. "You throw away a lot of money owning a home too," he says. Property taxes, maintenance, repairs—"if the HVAC system goes out, you're not getting that money back." He describes homeownership as a "negative cost of carry": an asset that costs you money to own, unlike stocks, which typically pay dividends.

The key framing: "Renting is the maximum amount you're going to pay in a month. When you own a home, the mortgage and property taxes, that's the minimum you're going to pay." Some months you might pay nothing extra; other months could cost tens of thousands for a new roof or foundation work.

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What you'll learn

  • 1 (01:00) **The Rent vs. Buy Debate: Setting the Stage** - Ryan Sterling joins to tackle the core question, starting with the classic "renting is throwing money away" vs. "homeownership is a money pit" framing.
  • 2 (03:03) **Why "Rent is Throwing Money Away" is Misleading** - Ryan explains that owning a home comes with its own significant and often unpredictable costs.
  • 3 (05:28) **The Long-Term Financial Upside of Owning** - Despite the costs, Ryan explains why owning a home can still be a net positive in a financial plan, especially for retirement.
  • 4 (06:28) **A Real-World Case Study: Why Buying in NYC Didn't Make Sense** - Ryan details his personal experience evaluating whether to buy the apartment he was renting in New York City.
  • 5 (08:45) **The NerdWallet Calculator and the Shocking Break-Even Timeline** - Sean and Elizabeth use the NerdWallet rent vs. buy calculator to demonstrate how long it can take for buying to become the better financial move.
  • 6 (10:38) **The "Five-Year Rule" and Hidden Moving Costs** - The panel discusses the classic advice that you should plan to stay in a home for at least five years for the purchase to make sense.
  • 7 (12:09) **HOA Fees: The Devil You Know vs. The Devil You Don't** - The conversation pivots directly to the listener's question about how to think about HOA or condo fees.

+ Full timestamped outline available in the app

Guests on this episode

Ryan Sterling Sean Piles

Show Notes

Learn how condo and HOA fees change the math on renting vs. home ownership, and how to resist a pricey tech upgrade.

Is buying a home with a hefty condo or HOA fee worth the money compared with renting? Hosts Sean Pyles, CFP®, and Elizabeth Ayoola talk with Ryan Sterling, CEO of NerdWallet Wealth Partners, about a listener trying to factor condo fees into the rent vs. buy decision. You’ll hear why the idea that renting is “throwing money away” overlooks the costs homeowners might not get back, how long it could take for buying to break even at different mortgage rates, and why the payoff of owning a home can be as much about emotions as finances.

Then, how do you talk yourself out of a big purchase you don’t really need? Sean and Elizabeth weigh the pull of Apple’s new $2,000 folding phone and a high-end smartwatch, why monthly installment plans and phone leasing can make pricey tech feel cheaper than it is, and how to tell whether a splurge lines up with your values.

Your financial decisions deserve a real partner. Learn more about NerdWallet Wealth Partners here:  https://nerdwalletwealthpartners.com/

Thinking of buying a property? Know the real cost first with NerdWallet’s Rent vs. Buy Calculator here: https://www.nerdwallet.com/mortgages/calculators/rent-vs-buy-calculator

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