Deciding whether to keep renting or finally step into homeownership is one of the biggest financial crossroads Missourians face. With rents rising in many towns and mortgage payments higher than they’ve been in years, it can feel hard to know what makes sense.

At Exchange Bank of Northeast Missouri, we’ve walked this road with neighbors for generations. Whether you’re comparing your first apartment lease against a starter home, or weighing a remodel against a move, we want you to see the whole picture clearly. Let’s dive into renting vs. buying and which path best fits your life.

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What Makes Renting and Buying Different?

Renting often feels simpler: you sign a lease, pay your monthly rent, and the landlord takes care of major repairs. But you’re also limited in what you can change, and your payments don’t build ownership.

Buying, on the other hand, means you’re responsible for more: mortgage, property taxes, insurance, and upkeep, but every payment helps grow equity in something that’s yours. That equity can be tapped later with a home equity line of credit (HELOC) if you want to update or expand your space.

Learn More: Buying a House in 2025: What You Need to Know

The Big Questions to Ask Yourself

When choosing between renting and buying, consider:

  • Monthly affordability: Does a mortgage plus taxes and insurance fit your income?
  • Your timeline: If you’ll stay in one place five years or more, ownership usually wins.
  • Flexibility vs. control: Do you want the freedom to move easily, or the freedom to renovate?
  • Upfront costs: Renting requires deposits; buying requires down payments and closing costs.

What Missouri Looks Like in 2025

Here are some numbers that matter when comparing renting vs. owning:

Metric Value

Average Fair Market Rent in Missouri (overall)

~$1,059/month for residential rentals.1

Typical rent for a one-bedroom apartment

~$1,121/month.2

Median home price (Missouri)

≈ $257,485 in early 2025.3

These figures show that while rent might seem lower in many areas, mortgage payments plus homeownership costs can often come out on top, especially when benefits like equity and tax deductions are included.

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Why Buying Often Makes Better Long-Term Sense

Buying tends to win out over renting when these conditions apply:

  • You plan to stay 5+ years in the home.
  • Mortgage rates are stable or falling (or at least you can lock in a fixed rate).
  • You’re able to cover upfront costs like down payment and closing.
  • You want ownership perks: building equity, customizing your space, or avoiding rent increases every year.

By buying, many homeowners in Missouri will find their monthly housing cost (mortgage + insurance + taxes + maintenance) becomes comparable or even lower than renting over time, especially as rent inflation continues.

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Related: The Real Cost of Building Your Dream Home

Pros and Cons at a Glance

Let’s take a look at some of the pros and cons of renting and buying.

Renting – Pros

  • Low upfront costs
  • Easy to move if life changes
  • No responsibility for major maintenance

Renting – Cons

  • No equity buildup
  • Less stability and possible rent rises
  • Few options to customize

Buying – Pros

  • Equity grows with each payment
  • Long-term housing cost stability (fixed mortgage)
  • Freedom to customize, remodel, or use HELOC for updates

Buying – Cons

  • Higher upfront costs (down payment, closing costs)
  • Responsibility for upkeep and repairs
  • Less flexibility if you need to move quickly

How Buying Is More Accessible Than Many Think

Many first-time buyers assume they need 20% down, and that’s often not true. There are programs, down payment assistance, and different mortgage options. Exchange Bank of Northeast Missouri helps many local buyers with:

  • Low-down payment mortgage options
  • Preapproval support so you know your price range up front
  • Clear estimates of total monthly cost, including taxes/insurance/maintenance

When those pieces are clear, buying looks increasingly like a better investment than renting.

Talk to a Local Mortgage Lender

Staying Put? A HELOC Could Be the Answer

If you already own and love your neighborhood but crave more space or upgrades, you don’t necessarily have to move. With a HELOC, you can access the value you’ve built in your home to fund projects like kitchen remodels, new roofs, or finishing the basement, without starting over in a new house.

Learn More About HELOCs

Read More: Home Equity Loans vs. HELOCs for Home Improvement Projects

How Exchange Bank of Northeast Missouri Can Help

Whether you’re ready to apply for your first mortgage, exploring loan options for an upgrade, or considering a HELOC, our local lenders are here to listen first and guide you step by step. We know the Missouri market because we live here too, and we want to help you make a decision that fits your life today and supports your future tomorrow.

Contact a Local Lender Learn More About Home Loans

Member FDIC, Equal Housing Lender, NMLS#EBNEMO

Sources

1 Missouri (MO) Average Rent Prices 2025 | Rental Real Estate
2 Average Rent in Missouri | Apartments.com
3 Missouri Housing Market: 2025 Home Prices & Trends | Zillow