Rent vs. Buy in 2026: Pros and Cons and When Buying Makes Sense

"In most U.S. markets in 2026, buying a home only makes financial sense if you're staying for at least 5-7 years. Here's how to know whether that's you and whether you're actually ready."

In most U.S. markets in 2026, buying a home only makes financial sense if you’re planning to stay at least five to seven years in the home. The math of buying or renting a home has shifted in recent years, and in many markets renting is mathematically the cheaper option on a monthly basis. Yet, buying still builds more wealth over a longer time horizon. The right answer for you will depend on your personal timeline, financial readiness, and vision for your life. This guide will walk you through it all.

There’s no universally “better” option when it comes to renting or buying. Anyone who tells you otherwise is likely selling something or is colored by their own bias. The goal of this guide is to provide you with every data point, framework, and tool you’ll need to make the decision that best fits your life.

Currently, 30 year fixed mortgages are hovering around 6.5% or slightly higher. The national median home price has risen to nearly $420,000. The financial calculus of buying is genuinely complex. This guide will walk you through the true costs of each path, three rules that simplify the math, a 2026 market snapshot, five personal factors that could change the equation, and a step-by-step checklist to get you financially ready for whatever you may choose.

#The Real Costs of Renting vs Buying (Side-by-Side)

Before you can compare renting and buying, you need an honest accounting of the costs for each option. Most people only compare their monthly rent to a mortgage payment, and that comparison leaves out thousands of dollars a year on the buying side, and several recurring costs on the renting side.

#What Renters Actually Pay

Renting looks simple on the surface, but the full cost picture includes more than just your monthly payment to the landlord.

• Monthly rent: The national median monthly rent for a 2-bedroom apartment was approximately $1,450 in early 2026, though this varies dramatically by city. In the more rural midwest, you can find the same apartment for around $1,000 and in major metro areas this amount can easily exceed $3,000.
• Security deposit: Typically renters are asked to deposit one or two months rent ahead of time to be held by the landlord. That’s thousands in cash that earns nothing while tied up in a deposit, often for years.
• Renters insurance: Underpriced and underutilized, renters insurance averages just $15 to $40 per month and covers your belongings and liability. Skipping renters insurance is a mistake.
• Broker fees: In competitive rental markets, broker fees of one month’s rent or more are common. In most markets, fees are lower or nonexistent. Still, it’s safest to budget for it.
• Moving costs: Local moves average $1,250, long distance moves can easily reach up to $10,000. Since renters move more frequently than homeowners, these costs can add up significantly over time.
• Annual rent increases: This is one of the most underestimated costs of renting. The national average rent increase has been between 4% and 6% per year over the past decade. On a $1,800 per month apartment, a 5% increase adds $90 per month, or $1,080 per year, to your housing cost without any change in what you’re receiving for it.

#The True Cost of Homeownership

Buyers often focus only on the mortgage payment, but the real monthly cost of homeownership is substantially higher. Here’s what the full picture actually looks like:

• Mortgage payment: On a $420,000 home with a 10% down payment, and a 6.7% interest rate, the principal and interest payment is roughly $2,700 per month. That’s before any of the costs below.
• Property taxes: The national average effective property tax rate is about 1.1% of the home value annually, which is about $4,620 per year on a $420,000 home. This varies widely. In New Jersey property taxes average over 2%, while Hawaii is under 0.3%.
• Homeowners insurance: Averages between $1,500-$2,000 per year nationally, but can be substantially higher in disaster-prone areas.
• Private mortgage insurance (PMI): If you put less than 20% down on a home purchase, you may be required to pay PMI which typically costs between 0.5% and 1.5% of the loan annually. On a $400,000 loan, that’s $167 to $500 per month until you reach 20% equity.
• HOA fees: If you’re buying a home in a planned community, HOA fees can average between $100 to $300 per month. In high end markets, these fees can exceed $700 or more per month.
• Maintenance and repairs: The widely cited rule of thumb is 1% of home value per year, or $4,200 annually based on national home value averages. Some experts suggest going as high as 2%. This is a very real cost that covers everything from HVAC servicing, to roof repairs, and more.
• Closing costs: Typically range from 2% to 5% of the purchase price. These are paid upfront at closing. On a $420,000 home, that’s $8,400 to $21,000 out of pocket, in addition to your down payment.
• Selling costs: When you eventually sell, expect to pay between 5% and 6% in agent commissions plus additional fees. On a $500,000 sale, that’s $25,000 to $30,000 off the top. This is a cost that needs to be calculated when you consider selling.

Here’s how the monthly and annual costs compare at a glance:

To run the numbers for your specific situation, use our mortgage calculator to understand what your monthly payment would actually look like at different prices, rates, and down payment amounts.

#Pros and Cons of Renting vs. Buying a Home

Once you understand the raw costs, the next step is weighing the broader advantages and tradeoffs of each path. Neither renting nor buying is a good or bad choice in isolation. Each comes with real benefits and drawbacks that affect everyone differently.

#Advantages of Renting

• Flexibility: Renters can pick up and move within 30 to 60 days’ notice. In an era when the average American changes jobs 12 times over their career, and when remote work has radically expanded where people can live, this flexibility has real financial and personal value. About 35% of Americans move for job-related reasons.
• Lower upfront costs and the ability to invest the difference: A 10% down payment on a $420,000 home is $42,000 plus closing costs. A renter who keeps that capital invested in a diversified index fund and earns a rate of return around 7% annually could see meaningful wealth accumulation. This “invest the difference” strategy is real and valid. Renting isn’t automatically throwing money away if the savings are actually being put to work.
• No maintenance responsibility: When the roof leaks or the water heater fails, it’s the landlord’s financial logistical problem. For renters, this isn’t just convenience, it’s protection against large, unexpected expenses. Homeowners face average repair and maintenance bills of over $4,000 per year.
• No exposure to home value declines: Renters don’t lose money if their neighborhood’s home values drop. In the housing correction from 2008-2012, U.S. home prices fell an average of 33%, with some markets seeing declines exceeding 50%. More recently, some buyers who purchased homes during the peak markets around 2021, are still sitting on some losses.
• Easier access to expensive markets: In cities like New York, San Francisco, Seattle, or Boston, renting is often the only realistic option for middle-income earners. The median home price in San Francisco is $1.2 million. If putting 20% down, that’s $240,000.

#Disadvantages of Renting

• No equity building (but not necessarily no wealth building): The classic objection to renting is that you’re “paying someone else’s mortgage.” Yes, that’s partially true, rent payments don’t build equity. However, the median homeowner’s net worth is $396,200 versus $10,400 for the median renter. This gap reflects who tends to buy (higher earners with more savings), not a simple proof that buying is better. If a renter invests consistently, wealth is absolutely achievable.
• Rent increases: Average rent increases are around 5% annually, meaning your housing costs rise whether you want it to or not. A renter paying $1,800 per month today could be paying $2,300 per month in five years without any improvements in the living space or amenities.
• No customization: Renters typically can’t renovate, paint, or meaningfully personalize their space without landlord approval. For many people, this feels like a real quality-of-life constraint.
• Displacement risk: Landlords can decline to renew leases, sell the property, or convert it to a different use. Renters have less housing stability than owners, particularly in markets without strong tenant protections.

#Advantages of Buying

• Equity and wealth building: U.S. home prices have appreciated at an average of roughly 4% to 5% annually over the long term, per FHFA data. Local markets, however, can vary dramatically. Homeownership builds equity through both price appreciation and mortgage paydown. A “forced savings” mechanism that helps many people build wealth even without investing discipline.
• Predictable housing costs: A fixed rate mortgage means your principal and interest payment never changes. While taxes, insurance, and HOA fees can increase, the core payment is locked. Rent, though, can rise every year.
• Tax benefits: Homeowners can deduct mortgage interest and property taxes (subject to SALT cap). More importantly, the IRS allows a $250,000 capital gains exclusion ($500,000 for married couples filing jointly), meaning most homeowners pay zero federal taxes on their home sale profit. See IRS Publication 523 for more information.
• Inflation hedge: Real estate tends to appreciate in line with or above inflation over time. A fixed rate mortgage payment also becomes relatively cheaper in real terms as inflation rises. You’re repaying tomorrow’s dollars with today’s fixed obligation.
• Freedom to personalize: You are free to paint the walls, renovate the kitchen, put up a new fence. Homeownership gives you the freedom to make your home your own. This is a meaningful quality-of-life benefit that’s hard to quantify.

#Disadvantages of Buying

• High upfront costs: The median down payment for first-time home buyers is around 8%, which on a $420,000 home means $33,600. Add another 3% to 5% in closing costs and you’re looking at $42,000 to $54,000 out-of-pocket before you make a single payment.
• Illiquidity: Your equity is trapped in the home. Accessing it requires selling, refinancing, or taking out a home equity loan. None of these options are particularly cheap or quick.
• Full maintenance responsibility: Budget 1% to 2% of home value per year for maintenance. The first few years after purchase often bring unexpected repair costs.
• Market risk and underwater mortgage risk: If home values decline after you buy, you could owe more than your home is worth. This is known as being “underwater.” During the 2008 housing crisis, nearly 12 million homeowners were in this position. Buying near a market peak with a small down payment maximizes this risk.
• Reduced financial flexibility: A mortgage is a 15 to 30 year commitment. Life circumstances change: jobs, relationships, health, family needs. A home purchase is among the least flexible decisions a person can make.

Use Monarch’s budgeting tools to track your current housing costs and model what the transition to homeownership would do to your monthly cash flow.

#Three Rules That Make the Math Simple

The rent vs. buy decision doesn’t have to require a PhD in financial modeling. Instead, there are three frameworks that can get you 80% of the way to the right answer in about five minutes. These are often used by financial planners, real estate economists, and sophisticated buyers alike.

#The 5% Rule Explained

The 5% rule, popularized by financial planner Ben Felix, offers a simple way to compare the true annual cost of ownership to renting. The logic is this: when you buy a home, you’re giving up the investment return you could earn on that capital, plus carrying the unrecoverable costs of ownership.

Multiply the home’s value by 5%. That’s your annual “breakeven rent” which is the maximum rent you should be willing to pay for that same home before buying makes more financial sense.

For a quick example, let’s take a $420,000 home and multiply it by 5%. This equals $1,750 per month. If you can rent the equivalent home for less than $1,750 in your market, then renting likely wins financially. The 5% accounts for roughly 1% in property taxes, 1% maintenance costs, and 3% opportunity cost (what your down payment and equity could earn if invested). It’s a simplification, but it is insightful.

#Price-to-Rent Ratio for Your Market

The price-to-rent ratio compares median home prices to median annual rents in a market. Divide the median home price by annual rent for a comparable property. A ratio below 15 generally favors buying. Above 20 generally favors renting. Between 15 and 20 is a gray zone, and dependent upon your personal situation.

As of early 2026, coastal metro areas such as San Francisco, New York, and Los Angeles strongly favor renting by this metric. Midwest and Sun Belt cities favor buying. Check Zillow Research or Redfin’s Data Center for current ratios in your market.

#How to Find Your Breakeven Horizon

The breakeven horizon answers the most critical question in the rent vs. buy decision: how long do you need to stay for buying to make financial sense?

A rough breakeven calculation: Take your total upfront costs (including down payment and closing costs) and divide them by your monthly savings from buying vs. renting. A more complete calculation also accounts for home appreciation, investment returns on the down payment if renting, transaction costs on exit, and tax benefits.

Rule of thumb: In most markets in 2026, you need to stay at least 5 to 7 years for buying to financially outperform renting. In a high cost market with high price-to-rent ratios, the breakeven horizon can extend upwards of a decade.

Monarch’s goal tracking tools can help you track your timeline and savings progress so you know when you’re actually ready to hit that breakeven threshold.

#Is It Better to Rent or Buy in 2026?

The 2026 housing market is being shaped by several converging factors:

• Mortgage rates: The 30 year fixed mortgage rate is hovering between 6.5% and 6.8% as of early 2026. This is significantly higher than the pandemic-era lows around 3%, but down from the peak in 2023 of more than 8%.
• Home prices: The national median home price is approximately $420,000 after modest appreciation in 2025. Inventory remains historically low in most markets, which is sustaining upward price pressure.
• Affordability: Housing affordability remains at or near multi-decade lows by most measures. The typical mortgage payment now consumes roughly 30% or more of median household incomes. This is above the 28% threshold traditionally considered the affordability ceiling.
• Rent trends: Rent growth has slowed considerably from the 10% annual increases a few years ago to now low single digit increases in most markets and even flat or declining rents in overbuilt metros such as Austin and Phoenix.

The Federal Reserve’s Survey of Consumer Finances consistently shows homeowners building substantially more wealth than renters over time.

• Homeowners tend to have higher incomes to begin with.
• Homeownership forces savings through equity building, renters must have the discipline to invest the difference.
• Long holding periods: the wealth gap is much smaller for short-term homeowners.

The bottom line is that buying builds more wealth on average over long time horizons, but renting and investing simultaneously can close most of the gap if the savings discipline is actually there.

The 2026 specific question is dominated by mortgage broker blogs and local real estate sites which creates an opportunity for unbiased analysis. Here’s an honest take:

• The math favors renting on a monthly basis in the majority of U.S. markets in 2026, particularly coastal metros.
• The math favors buying over a decade or longer time horizon in most markets, especially lower-cost Midwest and Southeast cities where price-to-rent ratios remain below 15.
• For first time home buyers, the combination of high prices, elevated mortgage rates, and tight inventory makes 2026 a challenging buying environment. It’s not impossible, particularly in secondary markets, however.
• Rate trajectory: Many economists project gradual mortgage rate declines toward 6% over the course of the year as the Fed eases policy, though this is highly uncertain. Waiting for lower rates does have a cost. If rates drop and prices stay flat, buying comes more affordable, but if rates drop and prices spike, you’ve gained nothing.

#Five Personal Factors that Change the Equation

No calculator can make this decision for you because the numbers are only a part of the story. These five personal factors sometimes matter even more than the math of buying or renting.

1. #How Long Do You Plan to Stay?

Your timeline is the single most important variable in your decision to buy or rent. Buying costs are heavily front-loaded. You pay thousands in closing costs and transaction fees that take years to recoup through equity and appreciation.

Here’s a quick breakeven analysis by time horizon:

• Less than three years: renting almost always wins. You won’t have time to recoup the closing costs or build meaningful equity.
• 3-5 years: It depends heavily on local appreciation rates and your specific deal. Run the numbers carefully.
• 5-7 years: Buying starts to make sense in most markets. Appreciation and equity have time to accumulate.
• 7 or more years: Buying is typically the stronger financial choice in most markets at most points in time.

Americans are moving less frequently than past generations. The average homeowner stays in their home for about 13 years. Americans also change jobs frequently, and the median age at first marriage has risen to nearly 30, which means life circumstances can shift faster than expected.

If there’s a realistic change you’ll need to or want to move within three to five years, think carefully before buying.

#2. What’s Your Financial Situation?

Before you can buy a home, lenders need to believe you can repay the loan. That means your finances need to be in order across several factors:

• Credit score: Conventional mortgage lenders typically require a minimum score of 620, but the best rates go to borrowers with scores higher than 740. A score below 700 can add up to 1.5% to your rate, adding potentially hundreds of dollars per month to your payment.
• Debt-to-income (DTI) ratio: Most lenders want your total monthly debt payments, including the new mortgage, to be below 43% of gross monthly income. Some loan programs allow up to 50% but with tighter scrutiny. The 28/36 rule is the traditional conservative guideline.
• Emergency fund: You should have three to six months of living expenses in a liquid savings account after closing. This is separate from your down payment and closing costs. Homeownership comes with surprise expenses, and depleting savings to close is a financially precarious position.
• Down payment benchmarks: If you can put down 20% you’ll eliminate the need for PMI and it gives you the best rates.. The median first-time buyer puts down 8%. FHA loans allow 3.5% down with a credit score of at least 580. Conventional loans allow between 3% and 5% down.

Before you buy, build your emergency fund and understand your full financial picture through Monarch’s net worth tracking.

#3. Are You Making This Decision Alone or With a Partner?

Buying a home with a partner is one of the largest joint financial decisions you’ll ever make. Getting it wrong, or making it without being aligned, can strain both your finances and your relationship.

• Joint income and affordability: Two incomes dramatically expand what’s affordable and approvable. A dual-income household earnings $120,000 combined can qualify for substantially more than two individuals earning $60,000 separately. The debt, credit, and financial health of both applicants affect the rate and approval.
• Financial alignment: Couples who haven’t explicitly discussed budget priorities, risk tolerance, and long-term goals often discover their misalignment during the home buying process . Are you aligned on how much to put down? How much do you want to stretch with the price? What neighborhood do you want to live in? What would happen if one of your incomes disappeared?
• Decision making framework: Build in time to discuss the decision separately from the emotional excitement of house hunting. Use a shared financial tool, like Monarch’s couple budgeting features, to look at the numbers together. Do this before falling in love with a specific property.

For more on navigating major financial decisions as a couple, see our guide to financial planning for couples.

#4. What’s Your Risk Tolerance?

Buying a home is a leveraged, illiquid, concentrated bet on one asset in one location. Whether that risk is worth it depends on your situation and temperament. Consider the alternative: if renting saves you $500 to $1,000 per month compared to the true all-in cost of owning, and you invest the difference in a diversified index fund, you’d expect the historical average return of 8% annually. Over 30 years, $700 per month invested at 8% grows into approximately $1 million.

Nobel laureate Robert Shiller’s long-run analysis found that U.S. home prices, adjusted for inflation, appreciated at only about 0.6% annually from 1890 to 2012. This is far below stock market returns over the same period. The wealth-building power of homeownership comes largely from leverage, not from raw return on investment.

#5. What Does “Home” Mean to You?

This question is real and shouldn’t be minimized by financial analysis. About 49% of Americans say that buying a home feels “unrealistic” in the current market. Roughly one in three people no longer consider homeownership the “American Dream” in the traditional sense. For some people, the freedom and flexibility to move and not be tied down is more valuable then the financial benefits of ownership.

For others, homeownership represents stability, belonging, community roots, a place to raise a family, and the ability to shape their living environment. These are not irrational by any means. They are legitimate life values.

Neither is wrong. The best housing decision is the one that aligns with your values and your financial reality. If homeownership matters deeply to you and the numbers are borderline, that emotional and psychological value is part of the calculation. If you genuinely love the freedom of renting and the math supports it, there’s no shame in renting indefinitely.

#How to Use a Rent vs. Buy Calculator

A rent vs. buy calculator takes your specific numbers and tells you approximately how many years it’ll take for buying to financially outperform renting.

Key inputs include:

• Home purchase price
• Expected down payment
• Current mortgage rate
• Monthly rent for a comparable property
• Expected annual home appreciation rate
• Expected investment return if you rent and invest the difference
• Property tax rate, HOA fees, and estimated maintenance costs
• How long you expect to stay in the home

The output is typically a breakeven year, the point at which buying’s cumulative wealth exceeds renting’s. If the breakeven is year four and you plan to stay 10 years, then buying looks good. If the breakeven is year nine and you only plan to stay five years, renting is likely wiser.

Calculator results are only as good as the inputs. It’s best to be conservative in your assumptions.

#How Monarch Helps with the Broader Picture

A rent vs. buy calculator tells you about one decision. Monarch helps you manage the financial ecosystem around that decision.

• Track savings toward a down payment: Set a goal, link accounts, and watch your progress.
• Budget for housing costs: Model your post-purchase budget before you buy to make sure the numbers work with your real spending.
• Monitor net worth over time: Whether you rent or buy, track your total net worth across all accounts to see if your housing decision is building long-term financial health.

#Getting Financially Ready for Buying or Renting

If you decide to buy, having your financial foundation set on solid ground is crucial. Here’s a checklist to make sure you are ready for homeownership:

1. Ensure that your emergency fund is in place. Having three to six months of living expenses set aside in case the unexpected happens is vital.
2. Pay down high-interest debt. Improve your DTI ratio before applying for a mortgage. Focus on credit cards first using the snowball or avalanche method.
3. Make sure you’re contributing to retirement accounts. If your company offers a match, ensure you’re contributing enough to receive the full amount.
4. Check and improve your credit score. Pull your free credit report, dispute errors, pay down revolving debt, avoid new credit inquiries. Try to improve your score.
5. Calculate your real budget. Use the 28/36 rule. Housing costs should be no more than 28% of gross income and debt payments no more than 36%.
6. Save your full down payment plus closing costs. Don’t drain your savings to close.
7. Get pre-approved (not just pre-qualified). A full pre-approval gives you a real number to work with and makes you more competitive in a tight market.
8. Research your target markets. Look at local price-to-rent ratios, inventory trends, and neighborhood-level appreciation data.
9. Plan for life after closing. Budget for moving costs, immediate repairs, and furnishing needs.

If you are buying with a spouse or partner, it’s important to review these steps with them as well if you plan a joint purchase. Mortgage lenders will typically look at the lower of the median credit scores. The debt-to-income ratio is also impacted if your partner is carrying significant debt. If your financial house is in order, but your partner’s is not, this can delay or even prevent you from obtaining the dream of homeownership. Be transparent in your finances and align your visions before moving forward. Monarch allows couples to easily collaborate and have a shared view of your finances.

Refer to our comprehensive guide to saving for a house and how Monarch works with you to help track the entire journey.

#If Renting Makes More Sense Right Now

Renting is a valid housing strategy. Here’s how to maximize it financially:

1. Invest the difference: If you’re saving money renting instead of buying, put that amount to work. Save and invest the difference to build real wealth over the long-term.
2. Build an emergency fund. Keep three to six months of expenses in a high yield savings account. This should be your first priority.
3. Track your rent-to-income ratio. Keep housing costs under 30% of gross income. If you’re above that, consider a different apartment, roommate, or market.
4. Negotiate your lease renewal. Rent increases are often negotiable, especially if you’re a good tenant in a market with rising vacancy rates.
5. Keep building your financial profile. Work on your credit score, save for a future down payment, and track your net worth so you can buy when the time is right.
6. Set a future review date. Check in annually on your local price-to-rent ratio, your financial readiness, and your timeline.

Use Monarch’s planning tools and emergency fund guide to set yourself up for financial resilience either way.

#The Bottom Line

If you don’t know where or how to begin, start by calculating your breakeven horizon, check your local price-to-rent ratios, and be honest about whether your financial foundation is really ready. If all three line up, then go ahead and start the search for your home. If you aren’t quite there yet, don’t fret. Keep building and take advantage of Monarch’s tools to move you in the direction of your goals.

Whatever you decide right now, the foundation is the same. You need strong savings, a clear budget, an emergency reserve, and a financial plan that tracks your net worth over time. Monarch is built to help you do exactly that.

#FAQs

Is it cheaper to rent or buy a house in 2026?
On a purely monthly cost basis, renting is cheaper right now in the U.S. The all-in monthly cost of homeownership typically runs $3,000 or more on a median priced home. The national median rent, however, is around $1,450 for a two bedroom.

What is the 5% rule for rent vs. buy?
The 5% rule says to multiply the home’s purchase price by 5% to get the annual “breakeven rent.” If you can rent a comparable home for less than that amount per year, renting is likely the better financial decision.

Is renting really throwing money away?
No, this is one of the most persistent myths in personal finance. Rent pays for housing, stability, and the flexibility to live somewhere without a massive upfront investment. The real question isn’t which option avoids waste, it’s which option builds more wealth over your specific timeline. Renting and investing the difference is a legitimate wealth-building strategy.

How long do you have to live in a house for buying to make sense?
In most U.S. markets in 2026, the breakeven horizon is somewhere between five and seven years. Below three years, renting almost always wins because you don’t have the time to recoup closing costs and transaction fees. For more than seven years, buying usually builds more wealth.

How much should I save before buying a house?
At a minimum, you need a down payment, plus closing costs, and a few months of living expenses saved in an emergency fund. If you’re putting down 20% on a $420,000 home, and anticipate 3% closing costs, you need $96,600 not including an emergency fund.

Should I buy a home or invest in stocks?
This is genuinely a personal decision that depends on several factors such as your timeline, risk tolerance, and local housing market. Historically, stocks have outperformed real estate on a pure return basis. Yet a home provides forced savings, a place to live, and valuable tax benefits. The honest answer is that the best choice is usually both. Buy when the circumstances align with your life’s goals and invest consistently no matter what.

What is the 28/36 rule?
The 28/36 rule is a traditional lender guideline for housing affordability. It says your monthly housing costs (mortgage principal, interest, taxes, insurance, and HOA fees) should not exceed 28% of your gross monthly income. Your total monthly debt payments including housing, cars, student loans, and credit cards, should not exceed 36% of your gross income. A household earning $10,000 monthly gross should ideally keep housing costs below $2,800 per month and debt payments below $3,600 per month.

Can I build wealth by renting and investing the difference?
Yes, definitely. You actually have to invest the difference though, and do it consistently. The “invest the difference” strategy works on paper, the challenge is executing it in real life when the savings feel more abstract compared to the concrete equity of homeownership.