The 5-Year Rule

Here's a clean framework: don't buy unless you'll stay at least 5 years.

Why five? Because it typically takes that long to break even after accounting for closing costs (buying and selling), early mortgage interest, and transaction fees. Some markets need even longer.

Say you buy a $350,000 home. Closing costs to buy: ~$10,000. Closing costs to sell: ~$21,000. That's $31,000 gone before you've built meaningful equity. If home values grow at the historical average of 3-4% per year, you need roughly 5 years just to come out even. Move sooner and you're the one throwing money away — not the renter.