Renting vs Buying in 2025:
What Actually Makes More Sense Right Now?

With interest rates stabilizing and home prices holding steady (but not dropping as many hoped), the question on everyone's mind is: should I rent or buy in this market? The answer isn't as black-and-white as it used to be. Here’s what you need to consider:

The Case for Renting:

Renting often gets a bad rap, but it comes with advantages—especially in uncertain times. Monthly costs are typically lower, especially when you factor in maintenance, property taxes, and upfront costs like land transfer tax and closing fees.
Flexibility is also a huge perk. If your job or lifestyle is in flux, renting gives you the ability to move without selling a property or facing market risk.

The Case for Buying:

Buying means building equity. You're investing in your future instead of your landlord's. It can also act as a hedge against rising rent prices, which have been steadily increasing in Ontario.
There are tax advantages for investors, and many lenders are becoming more competitive again with fixed and variable rate options. With programs available for first-time buyers, such as rebates on land transfer tax and reduced CMHC premiums, the upfront financial burden might not be as daunting as it seems.

What’s Changed in 2025?

Interest rates have cooled slightly, but they remain higher than during the pandemic-era lows. This means borrowing is still expensive—but rent has increased to reflect higher landlord operating costs too.
Meanwhile, supply remains tight, especially for entry-level homes in high-demand regions like Kitchener-Waterloo, pushing up both prices and competition.

Bottom Line:

The right choice depends on your financial stability, long-term goals, and lifestyle needs. If you're planning to stay put for at least 5 years and can handle the upfront costs, buying could make more sense. But if flexibility or cash flow is more important, renting may win out—for now.

Want help running the numbers or walking through real options? Let’s talk.