Renting versus owning: Why the debate still matters

A few weeks ago, I attended a financial workshop where the main topic of the evening was renting versus owning a home. The room was divided; half of the participants praised the flexibility of renting, while the other half emphasized the stability and wealth-building potential of homeownership.

It was a familiar scene. As a realtor in the GTA, I hear the same question almost every day, “Should we keep renting, or is it finally time to buy?”

The case for renting

One speaker cited Alex Avery’s book “The Wealthy Renter” to highlight the benefits of renting. The clear message was that renting only requires the first and last months’ rent, avoiding a large upfront payment. Moving becomes easier if circumstances change, and major repairs (such as a new roof, a broken furnace, or plumbing issues) are the responsibility of the landlord, not yours.

Avery also pointed out a common mistake people make when comparing costs. “Too many compare rent only to the mortgage payment,” he said, “And forget property taxes, insurance, repairs, and condo fees.” His message was clear; if you account for these additional costs and invest them wisely in RRSPs, TFSAs, or index funds, renting can make financial sense.

The case for ownership

Then came the sobering reality, and the numbers were clear. A Vancouver realtor reminded the audience that paying $2,800 a month in rent adds up to over $1.3 million in 30 years. In the end, you own nothing. “At least with a mortgage,” he argued, “You’re paying yourself.”

In GTA, the figures tell a similar story. You can buy a decent home for $900,000. With a 10% down payment, your mortgage, taxes, and insurance could cost over $4,500 each month, actually more than rent. Fast forward 30 years: if you rent for $2,600 a month, you’ll spend nearly a million dollars and still not own a single brick.

That’s where homeownership truly shines. Every mortgage payment isn’t just an expense, it’s building equity. It’s creating wealth for your future self, and unlike other investments, your home provides: shelter, stability for your family, and the freedom to make it truly your own

More than just math

Numbers aside, owning a home provides a reassuring sense of stability. You aren’t impacted by rent increases, changing landlord policies, or the risk of being asked to leave, because someone else has decided to sell. Canada offers some of the best tax advantages available: the principal residence exemption, which means you don’t pay capital gains tax when selling your home.

Your home also serves as a safety net. Many mortgages today include built-in home equity lines of credit, providing access to low interest borrowing in the future. If downsizing ever becomes part of your plans, your home can turn into a retirement nest egg.

As I told the group that night: “You can’t live in a mutual fund, but you can live in a home.”

The middle ground

Of course, renting isn’t wrong. For those who move often, or have the discipline to save and invest, it can work, but in my experience, most Canadians don’t consistently invest enough to offset what they lose in home equity, and that’s why ownership remains, for many, the best “forced savings plan” they will ever join.

My advice? Start where you’re able. Maybe it’s a condo, or a smaller starter home. Alternatively, it could be a duplex where rental income helps offset the mortgage. The point isn’t to jump into the biggest house you can’t afford, it’s to enter the market in a way that fits your lifestyle and long-term goals.

Ultimately, the debate between renting and owning will always persist. However, if: stability, wealth creation, and long-term security are part of your goals, owning a home remains one of the most effective ways to accomplish them.