Designing Stability from Renting to Owning

Create a smooth transition from renting to owning with design strategies that build stability, increase comfort, and help you make the most of your home.

There’s a basic economic principle known as scarcity,  a reminder that every valuable resource, including time and money, is finite. Nowhere is this more visible than in housing. Rent is temporary by design; ownership is permanence shaped by intention. For many Americans, bridging that divide isn’t about luck; it’s about strategy. If there’s one sector of society that understands scarcity and strategy, it’s our warriors. 

As a tribute to their sacrifice, mortgage lenders have carved out several attractive solutions to make homeownership and its attendant benefits much easier for those who serve our nation. That’s where a VA cash out refinance becomes transformative.  It allows qualified veterans and service members to access the equity already sitting in their homes, potentially using those funds to eliminate debt, invest in property improvements, or even transition toward full ownership stability. 

The logic is simple: While rent payments disappear into someone else’s portfolio, home equity compounds in your own. When viewed through the lens of scarcity, ownership is the only path that turns limitation into legacy. 

Consider a lifetime of renting versus a lifetime of ownership. On the one hand, renting comes with zero ownership prospects in the said real estate. It benefits the landlord because minimal effort is required (of the landlord) to pay off a substantial asset. For the tenant, renting offers a degree of freedom since rent contracts are typically signed for a year at a time. But when we look at things in perspective, objectively – everything comes into sharp focus.

Let’s assume an individual or family pays rent for 10 years with a starting price of $2,500 per month, escalating at around 5% per annum over 10 years. Granted, some rentals remain locked in place for several years, but inflation pressures invariably come home to roost. There is always an upward movement in rent prices over time. We can see this with historical trends adjusted for inflation. 

Using a base year of 1913-2025, rent experienced an average inflation rate of 2.74% per year. Put differently, rent that cost a tenant $1,000 in 1913 would cost $20,628 in 2025. Inflation has been particularly notable since 2022, driven by the lag effect of pandemic-related shutdowns and suppressed global economic activity. 

In 2025, inflation finally began to tick lower, but it remains above 3%. Viewed in perspective, it’s safe to say that rentals go up over time*.

*Source: https://www.in2013dollars.com/Rent-of-primary-residence/price-inflation 

How to Build Stability by Owning Your Own Home?  

It’s easier to rent than it is to own. But this is a short-term fix that doesn’t work well over the long term. Despite the hurdles to homeownership (solid credit score, substantial down payment, stable employment, and tax returns), homeownership actually makes sense. 

If we assume one year of rental payments at $2,500 per month, we are looking at $30,000 per year, without the 5% escalation, which translates into $300,000 over 10 years. Adding in the 5% per annum escalation would tack on an additional $77,000 over 10 years. That’s a substantial tally of $377,000. 

Now, looking in the rearview mirror, would you rather pay $377,000 to your landlord or purchase your own property using $377,000 over 10 years? It’s a no-brainer, right? And the reason for this is simple: when you invest in your own home, you are building a rock-solid foundation for the present and the future. 

When you own your home, every payment strengthens your future. When you rent, every payment strengthens someone else’s. The median price of a home in the United States today is around $400,000, give or take. Therefore, 10 years of rental basically foregoes the principal amount of a home (not the interest), and this does not benefit you or your family in any way.

Financial Empowerment Moves You from Shelter to Strategy 

Our example clarifies everything there is to know about the value of owning your own home versus renting. Isn’t it ironic that human nature tends to chase yield in every single market except the one we live in? Of course, that only applies to renters. Once you are exposed to the benefits of homeownership, it’s difficult to go back to renting. 

By transforming your abode into an appreciating asset through monthly mortgage payments, you’re leveraging your financial firepower to build equity in something that’s truly yours. This is the hallmark of authentic financial literacy.

Indeed, is true: Ownership transforms shelter into strategy. Your monthly rent expense is now a fixed, mandatory investment in your future.

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