The age-old question—“Should I buy or rent?”—has never been trickier to answer than it is in 2025. Whether you’re considering a home lease or purchase, with mortgage rates in flux, inventory levels shifting by zip code, and rent prices climbing like yeast in a warm oven, it’s no surprise buyers and renters alike are feeling stuck.

So let’s roll up our sleeves, grab a donut (or two), and break down what the market is telling us—along with some Sweet Tips to help you figure out which path makes the most sense for you this year.

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What’s The Home Leasing & Home Buying Market Like Now

Here’s what’s happening nationally and locally here in Michigan:

• Mortgage rates are hovering around 6.5%–7%, which is higher than the pandemic lows but lower than recent peaks.
• Rent prices are still increasing, especially in suburbs around Metro Detroit, where some areas have seen year-over-year hikes of 6–10%.
• Inventory is slowly improving, which is easing competition—but home prices remain high in desirable neighborhoods.
• Sellers are becoming more flexible with pricing and concessions, creating opportunities for strategic buyers.

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The Case for Buying in 2025

Buying a home remains one of the best long-term investments—when the timing is right for you. Here’s why many people are still choosing to buy:

✅ Pros of Buying:

• Equity Building – With every mortgage payment, you’re building ownership, not just paying for shelter.
• Predictable Payments – With a fixed-rate mortgage, you lock in your monthly cost (unlike rent).
• Freedom to Customize – Want to paint the walls bright pink or build a deck? Go for it. You’re the boss.

❌ Cons of Buying:

• Upfront Costs – Between down payments, inspections, appraisals, and closing costs, the initial investment is significant.
• Maintenance Is On You – When something breaks, it’s your responsibility—not the landlord’s.
• Less Flexibility – If you’re unsure where you want to live long term, buying can tie you down.

🍩Sweet Tip: If you plan to stay in one place for at least 5 years, buying typically puts you ahead financially—and emotionally. If you’re unsure, renting may buy you the time you need to figure things out.

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The Case for Renting in 2025

Leasing a home sometimes gets a bad rap, but it’s the right move for many people, especially during periods of transition or uncertainty.

✅ Pros of Leasing a Home:

• Flexibility – Moving for a new job? Unsure about the area? Renting keeps your options open.
• Lower Upfront Costs – Security deposit + first month’s rent is far less than a down payment.
• No Maintenance Headaches – When the sink leaks or the AC breaks, you’re not footing the bill.

❌ Cons of Leasing a Home:

• No Equity – Your rent goes to your landlord, not toward an investment in your future.
• Annual Rent Increases – Landlords adjust pricing frequently, and often unpredictably.
• Limited Control – From pets to paint colors, you’re often working within someone else’s rules.

🍩Sweet Tip: If your rent has gone up more than 8% over the past two years, it might be time to explore buying. Your monthly rent could be equivalent to a mortgage payment that actually builds equity.

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Home Leasing & Buying By The Numbers

Let’s say you’re currently leasing a home for $2,000/month in Metro Detroit.
That’s $24,000 per year—and $120,000 over five years—with zero ownership to show for it.

Now let’s say you buy a $300,000 home with 5% down:

• Your monthly mortgage (with taxes and insurance) might land around $2,200–$2,400.
• Over five years, you’ll have built equity, likely seen some appreciation, and locked in your monthly cost—while enjoying the freedom of homeownership.

Sure, there are costs to maintain the home, but those dollars go into your property—not someone else’s.

🍩Sweet Tip: Buying a home is a personal decision—not just a spreadsheet formula. Think about your lifestyle, future plans, and emotional priorities. The right choice supports your next chapter, not someone else’s timeline.

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