Should You Keep Renting or Is It Time To Buy?

You’ve probably asked yourself lately: Is it even worth trying to buy a home right now?

With high home prices and stubborn mortgage rates, renting can seem like the safer choice, especially here in Bellingham or Whatcom County where housing costs are a hot topic. Or maybe you feel renting is your only option right now. That’s a very real feeling. And the truth is, buying a home isn’t for everyone at every moment. It’s something you should only do when you’re ready and able, and when the timing feels right for you.

But here’s something to think about: while renting might feel safer or more affordable in the short term, especially in certain local neighborhoods, it can actually cost you more over time.

A recent Bank of America survey found that 70% of aspiring homeowners worry about what long-term renting means for their financial future. And they’re not wrong.

If you’re living in Whatcom County or planning to settle here, it’s important to understand that while homeownership may seem out of reach today, creating a plan now can set you up for long-term financial benefits.

Homeownership Builds Wealth Over Time

Buying a home isn’t just about having a place to live – it’s a key step toward building wealth. Home prices tend to rise over time, which means the longer you wait, the more expensive it may be to buy in areas like Bellingham or Ferndale. Even in markets where prices are cooling slightly, the long-term trend speaks for itself (see graphic below):

As home values increase, so does your equity, the difference between what your home is worth and what you owe on your mortgage. With every payment, your equity grows, boosting your net worth over time.

Today, the average homeowner’s net worth is nearly 40 times greater than that of a renter. That’s a staggering difference, and the numbers in the graphic below don’t lie (see graphic below):

That’s one of the reasons Forbes says:

“While renting might seem like [the] less stressful option . . . owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.”

The Biggest Downside of Renting

Why does renting often feel simpler in the short term? Lower monthly payments, fewer responsibilities, no long-term commitment. But long term? It can really cost you.

For decades, home prices have gone up, and rent has too. Even though rents in Bellingham or Whatcom County may feel stable today, the long-term trend shows steady increases (see graphic below):

This kind of financial uncertainty can make saving for a future home even more challenging. In the same Bank of America survey, 72% of potential buyers said they’re worried about how rising rent could impact their finances, both now and down the road.

Because here’s the truth: rent doesn’t build wealth. It doesn’t come back to you later. It just helps your landlord build theirs.

So, whether you rent or buy in Whatcom County, you’re paying a mortgage, just maybe not your own.

Renting vs. Buying: What Really Matters

Think of it this way: renting means your money is gone once you pay it. Buying means your payment builds equity, kind of like a savings account you live in. Sure, owning a home comes with responsibilities, but it also offers long-term rewards that renting just can’t match.

As Joel Berner, Senior Economist at Realtor.com, puts it:

“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it. In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”

Bottom Line

Renting may feel like the easier choice today, but it could cost you more in the long run, and it won’t help you build anything for your future.

If homeownership feels out of reach right now, you’re not alone. But the first step to escaping the rental trap is creating a plan. Connect with a trusted local real estate expert, someone who knows the ins and outs of the Bellingham and Whatcom County market, to set your goals and explore your options. That way, you’ll be ready to make your move when the time is right.