Deciding whether to rent or buy a home has become more complex in recent years, as rising mortgage rates and stagnant home prices in some regions alter the traditional wealth-building equation. Over the past decade, U.S. home prices have increased significantly, with the median price rising about 42% from 2015 to 2025.
Certain areas, like Los Angeles and San Francisco, have seen even more dramatic gains, creating substantial equity for homeowners, particularly those who leveraged mortgages wisely or purchased homes outright. However, tax benefits, including mortgage interest deductions and capital gains exclusions, enhance the appeal of homeownership as a long-term wealth strategy.
At the same time, the stock market has often outperformed real estate. Major indexes like the S&P 500 and NASDAQ have delivered returns well above median home price growth, illustrating that equity markets remain a strong option for building wealth. Experts note that lifestyle choices, location preferences, and “phantom costs” such as property taxes, insurance, HOA fees, and ongoing maintenance can significantly affect the financial outcomes of buying a home.
For many, the decision to rent or buy depends on individual financial goals, time horizon, and tolerance for liquidity constraints, balancing flexibility against long-term equity accumulation.
The Cardiff Connection
William Stern, Founder of Cardiff, notes that homeownership decisions are often driven more by societal pressures and lifestyle preferences than by rigorous financial analysis. Many homeowners underestimate ongoing costs, which can erode the equity they believe they are building.
By providing clear, data-driven financial insights, Cardiff helps clients evaluate the true cost of borrowing and other investment strategies. Their guidance ensures that individuals can make informed decisions regarding long-term wealth creation and financial flexibility. It’s Cardiff’s mission to empower clients with actionable financial intelligence that balances growth, risk, goals, and priorities.
