I ran the rent vs buy calculation for my city with real current numbers and want to share the methodology.

For a $420,000 home in a mid-sized US city:

• Down payment: $84,000 (20%)
• Monthly PITI (principal, interest, taxes, insurance): approximately $2,850
• Average maintenance/repairs budget: $420/month (1% of home value annually)
• Total monthly housing cost: $3,270

For a comparable rental in the same area: $1,900/month.

Difference: $1,370/month. Over 5 years, that's $82,200 I'm spending more to own vs rent, plus I've tied up $84,000 in a down payment that could have earned returns elsewhere.

The breakeven analysis considering appreciation, principal paydown, and tax benefits requires assuming appreciation rates. At 3% annual appreciation, the breakeven in my market is approximately 8-9 years. If I plan to stay fewer than 8 years, renting is mathematically better. More than 10 years, owning likely wins.

I'm renting. I don't plan to stay in this city for 10 years.