See exactly how much wealth you lose by renting versus building equity through house hacking over 10 years. The numbers speak for themselves.
Renter Wealth (10yr)
$38,359
$206,350 total rent paid
Wealth Difference
+$304,444
in favor of house hacking
House Hacker Wealth (10yr)
$342,803
$157,748 in equity
30-year fixed loan term
Property tax: 1.2% of value
Insurance: $2,400/year
Maintenance: 5% of rental income
Vacancy: 5% of rental income
Closing costs: 3% of purchase price
Renter invests savings at 7% annual return
Rental income grows at same rate as rent increase
Total net worth trajectory: renting vs. house hacking
Detailed comparison of wealth accumulation each year
| Year | Renter Wealth | Hacker Wealth | Property Value | Equity | Difference |
|---|---|---|---|---|---|
| Start | $19,500 | $10,500 | $300,000 | $10,500 | — |
| 1 | $20,865 | $36,538 | $309,000 | $22,736 | +$15,673 |
| 2 | $22,326 | $65,173 | $318,270 | $35,458 | +$42,847 |
| 3 | $23,888 | $96,611 | $327,818 | $48,690 | +$72,723 |
| 4 | $25,561 | $131,071 | $337,653 | $62,455 | +$105,510 |
| 5 | $27,350 | $168,789 | $347,782 | $76,778 | +$141,439 |
| 6 | $29,264 | $210,017 | $358,216 | $91,686 | +$180,753 |
| 7 | $31,313 | $255,028 | $368,962 | $107,207 | +$223,715 |
| 8 | $33,505 | $282,005 | $380,031 | $123,370 | +$248,500 |
| 9 | $35,850 | $311,208 | $391,432 | $140,206 | +$275,358 |
| 10 | $38,359 | $342,803 | $403,175 | $157,748 | +$304,444 |