Should I rent or buy a home?

The decision depends on the '5-Year Rule' and unrecoverable cost math. When you purchase a home, transaction closing costs (2% to 5% when buying, 6% to 8% in realtor and transfer fees when selling), loan interest, property taxes (1% to 2.5% annually), homeowner insurance, and maintenance (budget 1% of home value annually) are sunk costs that build zero equity. If you stay in a property for less than 5 years, renting and investing the difference in low-cost index funds almost always builds more net wealth. If you have an emergency fund, stable career, and plan to stay for 7 to 10+ years, buying provides fixed-cost housing stability and long-term equity appreciation.