Another lease renewal just landed in your inbox. Rent went up again. And somewhere between signing it and scrolling home listings on your lunch break, the big question pops up:
Is buying a home still worth it?
It's a fair question! Home prices and interest rates are higher than they were a few years ago, and you can start investing from an app on your phone. Plenty of people are wondering whether the old "buy a home, build your future" advice still holds up.
We've been building homes in the Fargo-Moorhead area for decades, and our answer is yes... with a few honest caveats.
Do Homeowners Really Build More Wealth Than Renters?
Bach points to a big wealth gap between homeowners and renters, and the newest numbers show it's real. According to the Federal Reserve's 2025 Survey of Consumer Finances, the typical homeowner has a net worth of about $458,900. The typical renter? About $10,600.
That's a big gap! But we want to be straight with you: owning a home isn't the only reason for that difference. Homeowners also tend to be a little older and earn more, so they've had more time and income to build savings.
What the numbers do tell us is this: for most families, their home is their single biggest source of wealth. It's one of the most dependable ways everyday people build a financial future.
How Buying a Home Builds Equity and Long-Term Wealth
So why do homes build wealth so well? A few simple reasons.
It saves for you. Every mortgage payment chips away at your loan and builds equity, the part of your home you truly own. You don't have to remember to do it. It just happens, month after month.
It grows while you live in it. Over time, homes tend to rise in value, especially in growing communities like Fargo, West Fargo, Horace, and Moorhead. And that growth applies to your whole home, not just the down payment you put in.
It keeps your costs steady. With a fixed-rate mortgage, your principal and interest stay the same for the life of the loan. Compare that to rent, which tends to creep up every year.
Home Equity vs. Investing in the Stock Market
You've probably heard the advice: "Just rent and invest the difference." On paper, it works! The stock market is a great tool, and it's easy to get started.
The catch? Most people don't actually do it. Life happens, and that "difference" ends up going toward dinners out, a new phone, or a weekend getaway. A mortgage payment, on the other hand, builds equity even on the months you're not feeling especially disciplined.
The good news is you don't have to choose. Many of the most financially secure families build equity in their home and invest for retirement. Think of them as teammates, not rivals.
When Renting Makes More Sense Than Buying
We build homes for a living, so you might expect us to say everyone should buy right now. We won't. Renting can be the right call for a season of life, like when:
- You might move for a job in the next couple of years
- You're still building an emergency fund
- Owning would cost a lot more each month than renting
- You're putting serious money into savings or investments every month
The real difference isn't renting versus owning. It's renting with a plan versus renting without one. If you're renting today, the best thing you can do is start mapping out what your path to homeownership could look like.
Are You Ready to Buy a Home? A Quick Checklist
Not sure where you land? Ask yourself:
- Do I see myself living in the area for at least five years?
- Could I comfortably handle the full monthly cost of owning, including taxes and insurance?
- Will I still have some savings left after my down payment?
- Can I keep saving for retirement while I own?
If you're nodding along to most of these, homeownership might be closer than you think. And if you're not quite there yet, that's okay too. Knowing what to work on is a plan.
Why a New Construction Home Gives You a Head Start
Here's where we get a little excited. When you choose a new Jordahl home, you're not just building equity. You're starting on solid ground.
Lower surprise costs. Older homes can come with a to-do list: an aging furnace, a roof near the end of its life, drafty windows. A new home lets you skip those early repair bills and put that money toward your future instead.
Built for Midwest winters. Our energy-efficient homes are designed to handle North Dakota weather, which can mean lower monthly utility bills. Every dollar you're not spending on heat is a dollar you can save.
Peace of mind. Our warranty and local, responsive team mean you're never left guessing after closing day.
A home that fits your life. With our floor plans and in-house Design Center, you can create a space that works for how you live now and where you're headed next.
Ready to start building equity sooner? Our quick close homes let you move in without waiting on a full build, so your payments start working for you, not a landlord.
Talk With a Fargo Home Builder About Your Plan
So, is buying a home still a smart financial move? For many people, yes, especially if you're planning to stay a while and you go in with a plan.
Our job isn't to rush you. It's to help you understand your options, answer the questions you didn't know to ask, and help you decide when the time is right for you. Whether you're ready to build, curious about a quick close home, or just starting to explore, we'd love to help.
Check out our current offers, text us to set up a tour, or connect with the Jordahl Custom Homes team to start planning your next step. Your future home might be closer than you think!
This article is for general education, not financial advice. For guidance on your situation, we recommend talking with a lender or financial advisor.
