AZ couple bought a house to avoid a rent hike — and now regret it. Ramit Sethi shares the truth about renting

Mon, Aug 18, 2025, 6:15 AM 5 min read

For many people, buying a home is part of the American dream. But is it always the best path? If you're tired of "throwing money away" on rent and considering buying, it's important to take the time to ensure it makes sense for your situation — both financially and emotionally.

Ramit Sethi, the author of the New York Times bestseller I Will Teach You to Be Rich and host of a popular podcast by the same name, recently spoke with a couple who bought a home in Arizona after their rent increased, and they discovered it may have been the smartest financial move.

What started as an effort to escape rising housing costs quickly turned into a financial strain, one that, Sethi argues, could have been avoided with a more thoughtful approach. The couple now finds themselves paying more for a mortgage than they would have if they'd stayed in their rental. And they're far from alone.

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In the “We bought a house…to avoid a rent hike. Big mistake” episode of the Money for Couples podcast, a couple explains that they purchased a home in Arizona in 2022 because their rent had been rising.

They had started out paying $1,300, which increased to $1,800. Their landlord then wanted to raise it again to around $2,400, so they decided to buy instead of putting their money "toward nothing."

Today, their monthly housing costs, including mortgage and HOA fees, total around $2,700 — $300 higher than if they'd stayed in the rental. And that's without factoring in long-term maintenance costs, which in a place such as Arizona can be steep if the air conditioning goes out.

“You were afraid of a rent increase, but now you’re paying more,” Sethi tells them bluntly. “Rent is not throwing money away. It’s a financial and lifestyle decision,” he explains. “You can throw money away on interest, too.”

According to Sethi, the notion that renting is "throwing away money" is one of the biggest financial myths in America. He compares it to buying a car or subscribing to a service — rent is simply paying for a place to live.

Sethi's larger point is that renting isn't failure, it's a valid choice for many people, especially when home prices are high and inventory is tight. In fact, according to USA Today, the monthly cost of renting across all 50 of the largest metro statistical areas was 37% cheaper than buying a typical home in 2024.