Rent vs buy, by country

How to read price-to-rent

• < 15× annual rent: Buying typically wins on a 5+ year hold. The mortgage payment is close to the rent payment, so equity build offsets the down payment opportunity cost.
• 15-20×: Buying edges renting on long holds (10+ years). Below 5 years, renting usually wins after closing costs and stamp duty.
• 20-25×: Coin flip. Buying needs significant price growth or a 10+ year hold to beat renting + investing the down payment.
• > 25× annual rent: Renting clearly beats buying. The mortgage on the median home is far higher than rent, and equity build is slow.

Country price-to-rent ratios

What this calculation does — and doesn't — capture

• Price-to-rent is a market signal, not a personal one. Your specific apartment may have a very different ratio.
• The mortgage column above is the full payment on the median home with the country's average mortgage rate. Closing costs, property taxes, maintenance, insurance add 1–3% per year of the home price on top.
• Equity build matters: each month you pay mortgage, part goes to principal. After 10 years you own meaningful equity. That offsets the gap between mortgage and rent — but not always enough.
• Hold period is the most underrated input. Below 3 years, almost nowhere makes financial sense to buy. Above 10 years, even expensive markets can work if local wages keep up.