🏠 Renting vs. Owning in Massachusetts: Why Buying Still Builds More Wealth

Renting in Massachusetts can feel easier and cheaper—especially with rising living costs from Boston to Worcester to the North Shore. No repairs, no property taxes, no worrying about mortgage rates. You pay your rent and move on.

But here’s what most people don’t realize: renting doesn’t build your financial future. Meanwhile, Massachusetts homeowners are building wealth automatically, month after month.

If you’ve been wondering whether buying is still worth it in today’s MA market, the long-term math is clearer than you think.

Renting vs. Owning in MA: The Real Cost Difference

Let’s break it down.

When you rent in Massachusetts—whether it's in Woburn, Billerica, Lowell, or Greater Boston—your payment disappears into your landlord’s pocket.

When you own, part of your monthly payment comes back to you through equity:

• Paying down your mortgage
  
  
• Home value appreciation (a big deal in MA, where home prices historically rise faster than the national average)
  
  

So while renting may seem more affordable upfront, there’s a long-term cost: you’re not building wealth.

A study by First American looked at several key time frames:

• 2006 – before the housing crash
  
  
• 2015 – 10 years ago
  
  
• 2019 – right before the pandemic
  
  
• 2022 – when mortgage rates shot up
  
  

In every single time frame, renters lost money, while homeowners gained wealth.

The data shows:

• Homeowners' net worth increased over time, even after accounting for taxes, insurance, and maintenance.
  
  
• Renters’ payments only grew more expensive with zero financial return.
  
  

The takeaway?
📌 Time in a home builds wealth. Time renting doesn’t.

Massachusetts Homeowners Consistently Come Out Ahead

Even in a market like Massachusetts—where prices can feel high—homeowners still benefit from:

• Strong long-term appreciation
  
  
• Stable monthly payments (no surprise rent hikes)
  
  
• Equity growth
  
  
• Tax advantages
  
  

Meanwhile, renters across MA often face:

• Annual rent increases
  
  
• High competition for apartments
  
  
• No financial return over time
  
  

The longer you own, the wider the wealth gap becomes compared to renting.

Good News: Affordability in MA Is Starting to Improve

You may still be thinking:
“Buying in Massachusetts feels impossible right now.”
Totally fair.

The last few years haven’t been easy for buyers. But MA buyers are finally getting some relief:

• Mortgage rates have begun to come down
  
  
• Home price growth has softened in parts of the state
  
  
• Incomes have risen over the past year
  
  
• Zillow reports monthly payments have gotten slightly more manageable compared to last year
  
  

Is buying suddenly easy? No.
Is it easier than it was a few months ago? Yes.

And in the long run, Massachusetts homeowners continue to build significantly more wealth than renters.

Bottom Line for Massachusetts Renters

Renting may feel simpler today, but owning is what builds real wealth in the long term—and MA data proves it again and again.

With affordability improving even a little, the path to homeownership in Massachusetts might be opening up more than you realize.

If you’re curious what buying could look like for your budget, neighborhood, or timeline—let’s talk. No pressure. I’m here to help you understand your options.