The Ultimate Price Of A Renter's Fear

Cara Lonsdale
Mar 15
2 min read

Is Fear of the Market Costing You More Than Buying a Home Would?

It's a common fear among potential homebuyers: "What if I buy at the wrong time and the market crashes?" This fear is understandable, but what if I told you that not buying a home and continuing to rent could actually be more costly in the long run? Let’s dive into a real-life example that illustrates this perfectly.

The 2005 Buyer vs. The Long-Term Renter

In late 2005, at the height of the market, an 1,879-square-foot home in the Scottsdale Stonebrook community sold for $475,000. Just four years later, during one of the worst real estate crashes in U.S. history, that same property had dropped in value to $320,000. A buyer who purchased in 2005 and needed to sell in 2009 would have faced a $155,000 loss.

Unfortunately, that was the reality for some homeowners. However, those who chose to hold onto their investment saw a completely different outcome. By January 2025, that same property would be worth $685,000—resulting in a $210,000 profit.

The Renter’s Reality

Now, let’s compare that to the renter who allowed fear to keep them from buying in 2005, in 2009, or even now. That renter has been paying rent for nearly 20 years, likely spending more than $475,000 over that time—with nothing to show for it. No equity. No appreciation. No financial gain.

The Lesson Here?

Yes, the market fluctuates. There will be ups and downs. But historically, real estate appreciates over time. Those who weather the dips come out ahead, while renters continue to pay someone else’s mortgage with no return on investment.