The debate over whether it’s cheaper to rent or buy is ongoing, especially in high-demand areas like Placer County, California. With rising home prices, increasing interest rates, and a shortage of available housing, it’s natural to wonder if homeownership still makes financial sense.
The reality? Even in today’s market, buying a home is one of the best long-term financial moves you can make. While renting might seem like the easier and more affordable option in the short term, homeownership continues to be the primary way Americans build wealth.
The Current Housing Market in Placer County
Placer County, which includes cities like Auburn, has experienced significant growth over the past decade. This demand has driven up both home values and rent prices.
Median Home Price (2025): $678,958 (2.2% increase from last year)
Average Rent (2025): $2,514 per month
With fewer homes available under $500,000 and competition for affordable housing increasing, waiting to buy could mean paying even more down the road.
Renting vs. Buying: What’s the Real Cost?
At first glance, renting may seem more affordable. There are no maintenance costs, and upfront expenses are lower. But renting also comes with some serious financial drawbacks:
You’re paying someone else’s mortgage. Every rent check you send is building your landlord’s wealth, not yours.
Rent is unpredictable. While your mortgage payment remains stable with a fixed-rate loan, rent prices increase annually in most areas.
You miss out on appreciation. Real estate has historically increased in value over time, meaning homeowners benefit from long-term equity growth.
A Closer Look at the Numbers
Average Rent in Placer County: $2,514/month
Mortgage Payment on a $678,958 Home: ~$4,784/month (assuming 15% down, 6.625% interest rate)
Yes, a mortgage payment might be slightly higher, but every payment builds equity in a home that’s growing in value. Plus, with tax deductions and potential refinancing options in the future, your long-term costs could end up being even lower than renting.
The Long-Term Wealth Benefits of Homeownership
Owning a home isn’t just about having a place to live—it’s about building financial stability. Here’s why:
Equity Grows Over Time - Every mortgage payment reduces your loan balance, increasing your stake in the property. Over the years, this becomes a powerful financial asset.
Home Values Appreciate - If home prices continue to appreciate at an average of 7.18% per year, a home purchased today for $678,958 could be worth over $1,357,916 in 10 years. That’s an increase of $678,958 in net worth—just by owning a home.
Stability & Predictability - Unlike rent, which can rise unpredictably, a fixed-rate mortgage locks in your payment, giving you financial security.
Tax Benefits - Homeowners may qualify for tax deductions on mortgage interest and property taxes, reducing their overall tax liability.
What About High Interest Rates?
It’s no secret that interest rates are higher than they were a few years ago. But waiting to buy could mean paying even more later.
Rates fluctuate—when they drop, you can refinance and lower your payment.
Property values are rising—the longer you wait, the more expensive homes become.
In the long run, the cost of waiting often outweighs the cost of higher interest rates today.
The Bottom Line
Renting might feel like the easier choice, but it doesn’t build wealth. Homeownership is still one of the smartest financial moves you can make—especially in a competitive market like Placer County.
At Broker Direct Lending, we’ve helped thousands of buyers navigate California’s housing market for over 24 years. We understand the challenges, but we also know the rewards of homeownership. If you're ready to stop renting and start building your financial future, we’re here to help.
Contact us today and let’s find the right home loan solution for you.
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