WHAT DANNY IS SAYING
A: Not gonna lie — for many people, renting makes more sense than buying. With homeownership costs at historic highs, I ask the question often of my clients, “Is homeownership actually right for you?”
Timing is everything. Are you planning to grow your family? Is your job stable? Eyeing an opportunity elsewhere? Can you cover a down payment without gutting your savings? If the answers are uncertain, renting buys you peace of mind. Use that time to build credit and savings with intention. If you expect to move within three to five years, renting may also be the smarter financial call. Buying comes with real transaction costs, and time is what allows equity to compound.
Contrary to popular belief, renting isn’t throwing money away. It’s buying flexibility, freedom from surprise repair bills, and the ability to keep savings liquid. That said, ownership has genuine appeal too — the projects, the personalization, the sweat equity. Over the long run, building equity in an appreciating asset remains one of the most reliable wealth-building tools available.
I’ve spent years helping people make this decision with clarity and confidence. Find a realtor you trust, and talk through whether homeownership is the right next chapter for you.
-Danny Yadegar, City Real Estate,
510-909-8330,
[email protected]
WHAT OTHERS ARE SAYING
A: Investing in housing for long-term appreciation rests on four fundamentals: employment growth, location, timing, and financing.
Before buying, consider:
• Are major local employers positioned for job growth?
• Is the commute practical and sustainable?
• Does the area offer strong schools, parks, and nearby amenities?
While homeownership can build equity over time, renting is often more cost-effective in the short term. It also offers greater flexibility by reducing responsibility for maintenance, renovations, and aging features. Just as importantly, renting can provide a measure of protection during downturns in the real estate market.
Over the past decade, median home prices in San Francisco rose by approximately 35% to 50%, with recent gains supported by growth in AI-related jobs. Sacramento experienced even stronger appreciation — about 65% to 80% — driven in part by remote work trends from 2020 to 2022, as buyers sought more affordable housing. These two markets illustrate how timing & local conditions can shape returns differently.
That said, real estate values do not move in a straight line, as the 2008 downturn demonstrated.
The most reliable strategy is to buy a home that aligns with your seven- to 10-plus year plan and supports your lifestyle and financial goals. In the meantime, renting works.
-Anne Feste, Vanguard Properties
A:
Buying a home is still one of the best ways to build wealth over time, but renting can be a preferable or smarter choice depending on your situation. For example:
• When renting makes daily life more convenient: If renting keeps you near the school you want, closer to family, closer to work, or in a community you already love, that convenience matters.
• When you are new to the neighborhood: Renting first can give you time to learn the commute, meet neighbors and see what the day-to-day actually feels like before you commit.
• When you need more time financially: Renting can afford you more time to save up or work on your credit for better financing terms. Being in a stronger financial position can give you a more competitive edge when buying.
• When your timeline is unknown: If you’re unsure how long you’ll be in one place because of your job, family circumstances or any number of factors, renting gives you breathing room and flexibility without forcing you to buy and sell before you are ready.
For many people, renting can actually help make a better buying decision when you’re ready.
-Leo Peak, Peak Family Real EstateGroup at REAL Broker
