Rent vs Buy a $750K Home: Full Cost Comparison
Home Price
$750K
Monthly Rent
$2,800
Down Payment (20%)
$150K
Est. Break-Even
0.8 yrs
Buying a $750K home at today's 6.75% rate requires a $150K down payment (20%) and results in a monthly mortgage payment of $3,892. Add $688/month in property taxes (1.1% average) and $625/month in maintenance, and total monthly homeownership costs are ~$5,205 — compared to $2,800/month renting equivalent housing. That's $2,405/month more to own upfront.
The price-to-rent ratio at this price point is 22 — in the neutral zone where the right choice depends on your timeline. The $23K in closing costs (3%) creates an initial hurdle that takes time to overcome through equity building and appreciation. At 3.5% annual appreciation, a $750K home gains ~$26K/year in value — a major long-term advantage for buyers.
The break-even point — where buying surpasses renting in total net worth — is approximately 0.8 years. This assumes you invest the rent-vs-buy monthly cost difference and down payment in stocks at 7% annual return. Breaking even in 0.8 years is relatively fast, making buying attractive even for medium-term horizons.
Beyond the break-even, homeownership at this price level builds $108K in mortgage principal per year (early years), plus appreciation. Over 10 years, the total equity gain from a $750K home at 3.5% appreciation is ~$308K, creating substantial wealth that renting cannot replicate. Tax deductions (mortgage interest, property taxes up to SALT limits) further favor buyers in higher tax brackets.