When to rent vs. buy a house: Weighing the pros and cons

It may sound like a good idea to rent a home when moving to a new town. But renting may not be the best choice for everyone. Let’s talk about whether you should buy or rent when moving out of state or relocating to a new city for work.

The pros and cons of renting when relocating

You need to understand the pros and cons of renting to decide if it’s better than buying.

Pros

Here’s why renting a home when moving to a new city can be a good idea.

• Renting is less permanent: Renting requires less of a commitment than buying a home. It gives you freedom to move again if you need to and the ability to try out different living spaces and neighborhoods.
• You don’t need a down payment: Moving is expensive. Making a down payment and paying closing costs may not be affordable on top of moving costs.

Cons

Though renting can be a good idea when you relocate to a new town, it has its downsides.

• It’s expensive in the long term: Renting can be more expensive than buying the longer you rent. Your money doesn’t go toward building equity and rents can increase any moment. According to USA Today, the rate at which rents are increasing has slowed in recent years but still was 4.2% in January 2025.
• A rental may not feel like home: With lease terms typically ranging from a few months to a year, the space you’re living in may not feel like it’s yours. A home you own can feel more like it’s yours.
• The landlord makes the rules: Since your landlord owns the building, they call the shots. You may not be able to remodel your space or paint the walls without permission. Also, not all rental properties allow pets.

The pros and cons of buying in a new city

Renting may seem like an easier option, but there are benefits to buying a house.

Pros

Here are some reasons why buying a house in a new city might be a better choice.

• Buying may be more affordable: While renting is less of a commitment, it can be more expensive. The money you spend on could builds equity in a home if you buy. Our rent vs. buy calculator can help you determine whether you should rent or buy a house.
• You may have more options: It may be easier to buy a home, even in a competitive housing market. If you’re moving with your family and have children or pets, a rental may not be an ideal option. Buying a home offers more freedom to find a space that works for you and your family.
• You don’t have to live there forever: If you’re worried buying a home is a permanent decision, don’t panic. Even if you plan on staying in a house less than 5 years, there are ways you can make buying a smart investment. You could turn your home into a long-term rental or vacation property. You can always sell your house, as well.

Cons

Though buying can be a great choice for many people when they relocate, it’s not without its downsides.

• Higher upfront costs: When you buy a property, you’ll have to make a down payment and cover closing costs. Those costs total 3% – 6% of the purchase price and therefore may be out of reach when you’re moving.
• It’s less flexible: When you buy a home, you’re tied to a mortgage payment. If you need to move again, you’ll either need to sell or rent out your house, which comes with its own costs. That makes buying less ideal for people who are unsure they’ll live in the same location more than a few years.

We offer incentives

The Rocket Mortgage® Relocation Team offers incentives to our relocating friends who want to buy a home. You may be able to take advantage of specialized pricing and award-winning customer service that will help make sure your move is as smooth and affordable as possible.

The bottom line

Picking up and moving to a new city can be incredibly exciting – and stressful. While renting is always an option, buying may be a better choice that can save you a lot of money in the long run.

If you’re planning on relocating to a new city and are interested in buying a home, don’t wait. Apply online and get your initial mortgage approval before you start your home search.