Good morning

Joseph

.

While I stand by my original numbers, since they’re based on real-life experience, here’s how things play out with the scenario you brought up, of a $1250/month rent on a $500k home vs. buying, living in, and then selling that $500k home.

First, as a reminder, here’s what it looks like at $3000/month rent:

Own and sell outcome for $500k home (blue) vs. renting that home at $3000/month (red).

Now, here’s how this changes at a $1250/month rent:

Own and sell outcome for $500k home (blue) vs. renting that home at $1250/month (red).

As you can see, there are significant quantitative changes:

• The break-even point moved from the end of Year 2 to the end of Year 8.
• The difference at the end of Year 30 dropped from about $882k in favor of buy and sell to about $193k in favor of buy and sell.
• The average per-year difference by Year 10 dropped from about $25k to about $2300.

What hasn’t changed is that in the long run, the math still heavily favors buy and sell over renting, and the higher the ratio of annual rent to home value, the more significant the disadvantage of renting.