Rent vs. Buy in Greater Boston: How to Decide

“Should we keep renting or buy?” is one of the most common questions we hear. In Greater Boston, both rents and home prices are high, so the answer depends on your numbers, your plans and your timeline. There is no single right answer. This guide shows you how to compare the true costs, and then you can test your own situation with our rent vs. buy calculator.

The true cost of renting

Renting is simpler to budget. Your main costs are:

• Monthly rent and any utilities you pay
• Renter’s insurance
• Move-in money: in Massachusetts, a landlord can ask for no more than first month, last month, a security deposit up to one month’s rent and the cost of a new lock
• Rent increases when your lease renews

The landlord usually pays for big repairs, property taxes and building insurance. You also keep the freedom to move. Learn your rights in our guide to renting in Massachusetts.

The true cost of owning

As the Consumer Financial Protection Bureau points out, many mortgage calculators show only principal and interest. Your real monthly cost also includes:

• Property taxes. Boston’s FY2026 residential rate is $12.40 per $1,000 of assessed value. Boston and some nearby cities offer a residential exemption for owner-occupants that lowers the bill. Rates vary by city.
• Homeowners insurance (or a condo unit policy).
• Condo or HOA fees, if you buy a condo.
• Mortgage insurance if you put less than 20% down on many loans.
• Maintenance and repairs. Roofs, boilers, water heaters and appliances are now your job.

There are also one-time costs: your down payment and closing costs when you buy, and selling costs later, such as agent fees, attorney fees and the Massachusetts deed excise tax. In most counties the seller pays $4.56 per $1,000 of the sale price (Barnstable County is higher).

A side-by-side example (for illustration only)

These numbers are made up to show the method. They are not market data, and your rate, taxes and fees will differ.

Before mortgage insurance, owning costs about $2,400 more per month in this example. But the comparison does not stop there. In the first year, about $6,500 of the mortgage payments would go to paying down the loan, which becomes your equity. If the home’s value rises, that adds to your equity too. If values stay flat or fall, owning can cost more than renting for years.

Equity, appreciation and break-even

Your equity is the home’s value minus what you owe. It grows two ways: by paying down the loan and by appreciation. Early payments are mostly interest, so equity builds slowly at first.

The break-even point is how many years you need to own before buying beats renting, after counting buying and selling costs. If you sell too soon, those costs can wipe out your gains. The CFPB notes that owning generally makes more sense the longer you plan to stay. Our calculator estimates your break-even year based on your inputs.

Opportunity cost: what else your money could do

Your down payment and closing costs could stay invested elsewhere if you rent. A fair comparison asks: would that money grow faster in savings or investments than in your home? Renting only “wins” this test if you actually invest the difference each month instead of spending it.

When renting makes sense

• You may move within a few years for work, school or family.
• Your savings would be too low after closing to handle a surprise repair.
• Your credit or income needs time to improve before you can get a good rate.
• You want to learn neighborhoods first, especially if you are new to the area.

When buying makes sense

• You plan to stay five years or more, or have a clear long-term plan.
• You have steady income, an emergency fund and a comfortable monthly payment.
• You qualify for a first-time buyer program that lowers your costs. See first-time buyer programs.
• You buy a two- or three-family and live in one unit. Fannie Mae’s April 2026 matrix allows up to 95% financing on a 2-4 unit home you live in, and rent from the other units can help with the payment. Read our owner-occupied multi-family guide.

How to use the calculator

1. Enter your current rent and expected yearly rent increase.
2. Enter a realistic home price, down payment and the interest rate from your lender.
3. Add property tax for the city, insurance, condo fee and a maintenance budget.
4. Choose how many years you expect to stay.
5. Review the break-even year and try a few “what if” scenarios.

How Luis can help

Luis has helped Greater Boston families decide when to rent and when to buy for more than 30 years, in English or Spanish. He can show you real prices and rents in the neighborhoods you like and connect you with trusted lenders. Book a free 15-minute call on our first-time buyer page.