As a real estate agent, you probably get the rent vs. buy question — “Is it cheaper to buy or rent in today’s market?” — as frequently as “How’s the market?” Answering that question properly can help boost your business.
According to the most recent National Association of Realtors’ Profile of Home Buyers and Sellers, first-time buyers now account for approximately 24 percent of all purchases. While this is the lowest share since 1981, working with first-time buyers can be an incredible source of business, provided you can answer their primary objection, “It’s cheaper for me to rent.”
7 ways to combat the rent vs. buy question
While down payments, student loans and limited inventory still hamper first-time buyer opportunities, here’s what you need to do to tap into this market and help these renters become homeowners now.
1. Know that some people are better off renting
Being a homeowner is not right for everyone. Renters who don’t plan on staying in a specific location for three years or more, who don’t want the cost or hassle of maintaining a home, or if they’re in a rent-controlled apartment, are typically poor candidates for becoming a homeowner — don’t waste your time.
2. Overcome the biggest stumbling block for new buyers — the 20% down myth
According to NerdWallet’s 2025 Home Buyer Report, “62 percent of Americans believe that a 20 percent down payment is required to buy a home.”
Moreover, “33 percent of non-homeowners state that not having enough money for a down payment is holding them back from buying a home at this time.”
According to DownPaymentResource.com, the average amount of Down Payment Assistance (DPA) in 2024 was $18,000. This is a powerful piece of data that you can leverage a variety of ways in your print, digital and social media marketing.
Here are four campaigns you can use to create more first-time buyers for your business.
*Want to buy but need help with your down payment?
How does $18,000* down payment assistance sound?
Contact Sally Agent at 800-555-1234
To learn if you qualify for Down Payment Assistance now!
[*Note: $18,000 was the average amount of DPA borrowers obtained in 2024.]
*Did you pay your landlord’s mortgage again this month?
When you become a homeowner, you build YOUR equity,
Not your landlord’s.
Contact Sally Agent at 800-555-1234
To learn how you can become a homeowner now!
*Another rent increase?
When you own a home with a 30-year fixed-rate mortgage,
You have the same mortgage payments for the next 30 years.
Contact Sally Agent at 800-555-1234
To learn how to become a homeowner now!
*Did you know that you can buy a home
With as little as 1 percent down?
Contact Sally Agent at 800-555-1234
To learn how to become a homeowner now!
(Note: For a list of low down payment options, visit NerdWallet’s 13 Best Sources for Low Down Payment Loans.)
To quickly determine whether DPA is available for a specific listing currently on the market, visit Realtor.com or Zillow, and click through the mortgage tabs to “down payment assistance.” Both companies have partnered with DPR to display all the down payment programs available for all listings posted on Zillow.
3. Fix the buyer’s credit problems
Obviously, some first-time buyer leads have credit problems. To clean up their credit, Consumer Advocate has ranked their top 10 rated resources for credit repair for 2025.
4. Discover the better deal (it might be new homes)
According to the National Association of Home Builders, existing homes are now outpricing new homes:
“In the second quarter of 2025, the median price for a new single-family home was $410,800, which was $18,600 lower than the median price of existing homes, which stood at $429,400. This marks the largest historical gap where existing home prices exceeded those of new homes, according to U.S. Census Bureau and National Association of Realtors data (not seasonally adjusted – NSA)”
Consequently, it’s important that you investigate what’s happening in your local market area. If there are new homes available, determine if they are a better value than resales. Furthermore, if the market is slow, builders may also provide additional incentives such as additional upgrades and/or mortgage rate buy-downs.
5. Use a rent vs. buy calculator
Another powerful way to help renters decide to become homeowners is to use a rent vs. buy calculator like the one from NerdWallet.com in conjunction with the rental and Cost of Living numbers and median rents for your market area.
For example, if you represent a buyer who is looking for a home in Atlanta with these parameters:
- Purchase price of $400,000 with 20 percent down, a 30-year fixed-rate mortgage loan of $320,000 (80 percent) at 5.72 percent interest.
- The buyer currently lives in a 2-bedroom, 2-bath apartment in Atlanta that rents for $2,000 per month. (Search ApartmentList.com to see the cost-of-living numbers and median rents for your location.)
- In the scenario below, if the renter plans on staying less than three years in this location, it’s cheaper to rent vs. buy. Once they get to year 3, however, the cost savings of being a homeowner is $244 per month, and that increases every year going forward.
6. Wield the most powerful reason to quit renting and become a homeowner
For decades, homeownership has been one of the most powerful strategies for building net worth. As the chart above illustrates, the current median net worth for homeowners is 43 times higher than the median net worth of renters.
Take advantage of today’s market
Many areas today are experiencing a buyer’s market, which is golden opportunity for first-time buyers. A great way to grow your business now and in the future is to help aspiring buyers become homeowners by dispelling the 20 percent down myth, determining if they qualify for DPA and showing them the real long-term cost of continuing to rent rather than to buy. When it comes to answering the rent vs. buy question, start with these points first.
Inman’s most popular theme month is back, Back to Basics. All September, real estate professionals from across the country share what’s working for them right now, how they’ve evolved their systems and tools, and where they’re investing personally and professionally to drive growth in 2025 and beyond.
Bernice Ross is president and CEO of BrokerageUP and RealEstateCoach.com, the founder of Profit.RealEstate and a national speaker, author and trainer with over 1,500 published articles.
