Quick answer
At current rates, renting wins over the full 30-year horizon in Raleigh. Monthly ownership cost $2,982 (vs $$1,860/mo rent) plus NC's 0.82% property tax make the math tough.
Rent vs Buy · NC
Rent vs Buy in Raleigh (2026)
Real math using NC's 0.82% property tax rate, $1,850/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Renting wins (30-year horizon)
In Raleigh at NC's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$2,982/mo
Mortgage P&I
$336,000 loan, 30yr @ 6.8%
$2,190
Property tax
0.82% of assessed (NC avg)
$287
Homeowners insurance
$1,850/yr NC avg
$154
Maintenance
1%/yr of home value
$350
Cash at close: ~$94,500 ($20% down + fees)
Renting
$1,860/mo
2BR rent (median)
Raleigh market rate
$1,860
Renters insurance
~$15/mo typical
$15
Down payment invested
$84,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,122 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $486,895 | $-124,345 | +$72,469 | $-196,814 |
| Year 10 | $564,445 | $-184,033 | +$72,701 | $-256,734 |
| Year 15 | $654,346 | $-218,301 | +$92,042 | $-310,343 |
| Year 30 | $1,019,450 | $-50,966 | +$410,106 | $-461,073 |
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in Raleigh?
In Raleigh at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($2,982) well exceed median 2BR rent ($1,860), and NC's 0.82% property tax makes the math especially tough.
What's the monthly cost of owning a home in Raleigh?
On a median $420K home with 20% down at 6.8% fixed rate: mortgage P&I $2,190, property tax $287 (0.82% of assessed value), homeowners insurance $154 (NC average $1,850/year), and maintenance $350 (1% of home value/year). Total: $2,982/month.
How much down payment do I need to buy in Raleigh?
20% down on a median Raleigh home ($420K) is $84,000. Plus closing costs of roughly 2.5% ($10,500). Total cash-to-close: about $94,500. FHA loans allow 3.5% down ($14,700) but require mortgage insurance that adds ~$164/month.
What's the 10-year cost of renting vs buying in Raleigh?
Over 10 years in Raleigh: renters pay $255,874 in cumulative rent but have $328,574 invested (assuming 7% return on the $84,000 down payment + monthly savings). Buyers have paid $427,653 in total ownership costs and hold $277,486 in home equity. Net: renting is ahead by $256,734 at year 10.