Renting a house would cost $156,120 over 5 years, with monthly payments increasing by 2% annually. Buying the same house for $500,000 with a $25,000 down payment and 2.99% interest rate would cost a total of $153,378 over 5 years, including taxes and interest, making buying slightly cheaper than renting. While buying builds equity and can increase in value, renting provides flexibility and avoids maintenance costs. Overall, buying provides long-term savings compared to renting.