Rent vs Buy: A Stress Test Perspective
Buying builds equity. Renting preserves flexibility. Stress testing shows which one survives pressure better.
Test Buying ScenariosThe missing variable: downside risk
Most rent vs buy calculators assume everything goes according to plan. Stress testing asks: what happens when it doesn’t?
Why renting can be safer (sometimes)
- Lower fixed commitments
- Faster exit in income disruption
- No repair or escrow shock
Why buying can still win
- Strong margin and savings buffer
- Stable income
- Long time horizon
How to compare properly
- Stress test the mortgage side.
- Look at runway under job loss or expense spikes.
- Compare flexibility, not just cost.
Use the tool to see whether buying survives stress better than renting for your situation.