Find your exact break-even horizon: how many years before buying a home builds more net wealth than renting and investing in the S&P 500.
The general rule of thumb in the US is at least 4 to 5 years. This gives the property enough time to appreciate and offset the 3% buyer closing costs and the 6% agent commission when you eventually sell.
Homeowners are on the hook for property taxes, homeowners insurance, HOA fees, and routine maintenance (HVAC replacements, roof repairs, plumbing), which typically averages 1% to 1.5% of the home value annually.
Most US homeowners now take the standard deduction ($14,600 single / $29,200 married filing jointly) following the Tax Cuts and Jobs Act, meaning mortgage interest only provides tax savings if total itemized deductions exceed the standard threshold.