Is It Better To Rent or Buy a Home in Southwest Florida?

Is It Better To Rent or Buy a Home in Southwest Florida?

If you’ve been asking yourself, “Is it even worth trying to buy a home right now?”—you’re not alone.

With elevated home prices and mortgage rates that remain higher than we'd like, renting might seem like the easier, safer option—especially in popular Southwest Florida communities like Sarasota, Venice, and Lakewood Ranch. But while renting can feel like the more manageable choice today, it may cost you significantly more in the long run.

Let’s break it down. (see graph below):

Why Renting Might Feel Safer—for Now

Right now, renting might look more attractive. In some cases, it can be more affordable month-to-month than owning, especially if you're not quite ready to buy. And that’s okay—homeownership should only be pursued when you're financially and emotionally prepared.

But here’s the key: renting isn’t building anything for your future.

According to a recent Bank of America survey, 70% of aspiring homeowners are concerned about how long-term renting could impact their financial future. And they’re right to worry (see graph below):

Homeownership Builds Wealth—Especially in High-Demand Areas Like Sarasota and Lakewood Ranch

Buying a home isn’t just about having a roof over your head—it’s about building long-term wealth. Real estate values in Sarasota, Venice, and Lakewood Ranch have generally trended upward, even during market fluctuations. That means the longer you wait, the more expensive homes may become.

As your property value rises, so does your equity—that’s the difference between what your home is worth and what you owe on your mortgage. Over time, this equity becomes a significant contributor to your net worth. (see graph below):

In fact, the average homeowner’s net worth is nearly 40 times greater than that of a renter. That’s a staggering gap—especially when you consider how fast real estate values are climbing in Southwest Florida’s most desirable areas.

Renting Means You’re Paying Someone Else’s Mortgage

Let’s be clear: whether you’re renting in Venice or owning in Lakewood Ranch, you’re paying a mortgage—just not your mortgage when you rent.

Rent doesn’t generate equity. It doesn’t provide a return. It simply covers your landlord’s costs—often their mortgage—while you walk away with nothing to show for it.

And rent is only going up. Even in areas where rental prices have leveled off, the long-term trend points to steady increases. This makes saving for a future down payment even more difficult.

What Really Matters: Long-Term Value

When comparing renting vs. buying, think long-term. Rent is money gone. Mortgage payments, on the other hand, are an investment—building wealth month by month.

As Joel Berner, Senior Economist at Realtor.com, puts it:

“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it. In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”

Bottom Line

If you’re feeling like homeownership in Sarasota, Venice, or Lakewood Ranch is out of reach, you’re not alone. But renting may cost you more in the long run—without helping you build anything lasting.

The key is to start with a plan. Let's connect and talk about your timeline, your financial goals, and what’s possible in today’s Southwest Florida market. Whether you’re ready now or just starting to plan, we’re here to help you move toward homeownership—on your terms.

Ready to explore your options? Let's talk.