Source: Independent Institute
by Jonathan Hofer & Kristian Fors
“When people decide to rent or purchase a home, they often focus on financial liabilities (what they pay to others) and overlook the economic costs of capital. Several rent vs. buy calculators are available online …. These offer many insights but tend to understate the unrealized opportunity costs of the road not taken, from both the renter’s and the homebuyer’s perspectives. Renters may have the opportunity to invest what would have otherwise gone toward a down payment and closing costs, as well as the monthly savings they gain from not having a mortgage. On the other hand, at some point, a homeowner’s monthly mortgage payment is likely to be lower than monthly rent, and it also offers the potential benefit of property appreciation.” (02/02/26)
https://www.independent.org/article/2026/02/02/homo-economicus-rent-vs-buy-calculator/