On a quiet Sunday evening, a Master Sergeant in his early forties sits at a kitchen table in a rental home he does not own. The lease has gone up again. The neighborhood is changing. His children ask why they have to move every few years. He’s done everything the country asked of him, and yet the question in front of him is simple, and even a bit uncomfortable:

If I keep renting, where will my family be in twenty years?

That question goes to the heart of financial readiness and to the long-term stability of veteran households across the country. The data shows a growing divide between those who own a home and those who rent for the long run, and it’s wider than many people realize.

Based on the Federal Reserve’s 2022 Survey of Consumer Finances, the median net worth of homeowners was roughly $396,000, compared with about $10,000 for renters, which is a difference of nearly forty to one. For veterans, that gap carries special weight. Access to the VA Home Loan benefit can turn stable income and honorable service into long-term wealth. Failing to use it, or delaying that decision for too long, can leave families with rising rent, thin buffers and less margin in retirement.

This article looks at what the numbers really say about renting and owning, why more families are staying in rentals longer, and how veteran households can think about these choices with clear eyes and a plan.

What the Numbers Say About Renting and Owning

The Survey of Consumer Finances breaks out wealth across income groups, age bands and housing status. Home equity sits at the center of that picture. In 2022, primary residence and other housing made up roughly a quarter of total household net worth, a larger share than a decade earlier.

When you compare owners and renters directly, the gap is striking. A recent review of Federal Reserve data reported that homeowners’ median net worth was nearly 40 times that of renters in 2022, and that the gap has widened further as home values appreciated and many renters’ savings stayed flat.

Timing matters as well. Urban Institute analysis has shown that households who buy a first home before age 35 accumulate substantially more housing wealth by age 60 than those who wait until their forties or later.

For veteran families, these figures point toward a basic conclusion. If you’re able to buy responsibly, earlier ownership in a stable community, supported by a VA loan, can translate into much more financial resilience by the time your children are grown and your working years are winding down.

Why More Families Are Renting Longer

If ownership is such a powerful driver of wealth, why are more Americans renting for longer?

Several forces are at work:

  • Affordability pressures. Home prices rose sharply in many markets after 2020, while mortgage rates moved higher. The same house now demands a larger monthly payment, especially in coastal and high-growth areas.
  • Rent strain. Research from the Pew Charitable Trusts found that by 2015, 38 percent of renter households were “rent burdened,” spending more than 30 percent of their income on rent, with 17 percent spending at least half. Those pressures have softened in some places and worsened in others, but they have not disappeared.
  • Delayed household formation. Pew Research Center reported that in 2023, 18 percent of adults between 25 and 34 were living in a parent’s home, often citing finances as a key factor. That can help some young adults save, but it can also delay the start of independent homeownership.
  • A preference for flexibility. Some families value the ability to move quickly, especially active-duty households anticipating Permanent Change of Station moves, or veterans still settling into civilian careers.

For veterans, this flexibility has obvious benefits. But every additional year of renting without a plan also reduces the time available for a mortgage to amortize and for equity to grow.

The Hidden Cost of Renting for the Long Run

Renting is not inherently bad. There are seasons when it is the right choice, particularly during a short tour, a job transition, or while paying down high-interest debt. The issue is not renting for a time. It is renting without a horizon.

Three long-term costs are often overlooked:

Lost principal pay-down. In a fixed-rate mortgage, each payment gradually shifts from interest toward principal. Over twenty or thirty years, that principal reduction acts as a forced-savings plan. Rent, by definition, doesn’t build equity.

Exposure to inflation. In many markets, rent increases track or outpace inflation. Owners with fixed-rate mortgages see the principal and interest portion of their payment stay level while wages, pensions and disability benefits often rise over time. Long-term renters shoulder more of that inflation risk.

Less protection in retirement. In retirement, a paid-off or low-balance mortgage can free up cash flow for health care, travel, or supporting children and grandchildren. Retirees who still rent remain exposed to landlord decisions and market swings at a point when income flexibility is limited.

For a Master Sergeant like the one at that kitchen table, staying in rentals for two more decades means carrying all three of those risks into the years when his family will need stability the most.

The VA Home Loan: A Tool, Not a Silver Bullet

For veterans and eligible service members, the VA Home Loan program is one of the most important financial tools available. Created in 1944 as part of the original GI Bill and updated many times since, the program offers several key features:

  • No required down payment for eligible borrowers within entitlement limits
  • No private mortgage insurance
  • Competitive fixed interest rates
  • Limits on certain closing costs

The Department of Veterans Affairs reports that the program has guaranteed tens of millions of loans since its inception.

Just as important as the benefit itself is how VA underwriting is structured. The program uses residual-income guidelines to make sure that borrowers still have enough cash flow after paying the mortgage to cover basic living expenses like food, transportation and utilities. That safeguard has contributed to lower serious-delinquency and foreclosure rates for VA loans compared with some other major mortgage types.

For veteran families, the VA loan does not remove all risk. Houses still require maintenance, local economies change and life events can disrupt income. What the program does is reduce the initial barrier to entry and provide a framework that, when used prudently, can support long-term stability.

Why Some Veterans Still Do Not Use the VA Loan

Despite these advantages, many eligible veterans do not use a VA loan when they buy, or do not buy at all.

Research and industry experience point to several reasons:

  • Misconceptions that VA loans always take longer to close
  • Concerns that sellers or real estate agents will see VA financing as weaker in a competitive bidding environment
  • Lack of awareness about changes to VA policy, including the removal of most county loan limits for borrowers with full entitlement
  • A belief that a conventional loan will be viewed more favorably, even when the VA option would be more affordable

These concerns are understandable, but they are not fixed laws of nature. Veterans who understand how the program works, choose a lender with deep VA experience and work with an agent who knows how to present a VA offer can often compete effectively, even in tight markets.

A Practical Framework for Veteran Families

Financial readiness should never be regarded as a slogan. Done right, it’s a set of habits and questions. For veterans and their families thinking about renting, buying, or shifting from one to the other, the following framework can help.

1. What does my budget really say?


Build an honest budget that includes base pay, pensions, VA disability, civilian income and any other recurring streams. List all obligations: auto loans, student loans, credit cards, childcare, and existing rent or mortgage. Households that keep a written budget and a modest emergency fund tend to weather shocks better and miss fewer payments.

2. How long do I realistically expect to stay?


If you expect to remain in a community for less than three years, renting may still make sense. Transaction costs and possible market swings can outweigh the benefits of owning in a very short window. If your likely horizon is five years or more, it’s worth a serious look at ownership, especially if you qualify for a VA loan.

3. What does buying versus renting look like over ten years?


Compare current and projected rent with a realistic ownership scenario: purchase price, taxes, insurance, maintenance and any association fees. Factor in the absence of private mortgage insurance on a VA loan and, where applicable, property-tax relief for disabled veterans. In many cases, the long-term difference is smaller than the monthly gap suggests.

4. Is my credit profile ready?


Credit scores, debt-to-income ratios and residual income all matter. If high revolving balances or recent late payments are pulling your profile down, it may be wise to spend six to twelve months stabilizing those factors before applying. Free tools from the Consumer Financial Protection Bureau and nonprofit counseling agencies can help you read your reports, dispute errors and build stronger habits.

5. What is my margin of safety?


Even with a VA loan, it’s prudent to keep an emergency reserve that can cover several months of essential expenses. That cushion turns an unexpected job change or medical bill from a crisis into a manageable problem.

Guidance for the Next Move

Taken together, several themes emerge for veteran households.

  • Treat long-term renting as a deliberate choice, not a default. If renting is the right call for now, be specific about why and for how long. Put dates and milestones against that decision.
  • Understand the power of early, responsible ownership. Evidence from institutions like the Urban Institute shows that buying earlier in life, when done prudently, can compound into significantly higher housing wealth by retirement age.
  • Use the VA benefit with clear eyes. The VA loan is neither a magic shortcut nor a consolation prize. It is a well-designed program that, paired with stable income and disciplined budgeting, can provide a strong foundation for long-term security.
  • Learn the language of the transaction. Terms such as “residual income,” “debt-to-income ratio,” and “entitlement” are not mere jargon. They’re the rules of the field. Veterans who understand them are in a stronger position to ask good questions and make better choices.
  • Think in terms of mission, not moments. A home purchase should serve the mission of your family: where children will go to school, where you will work, where you hope to retire, and how you want to live. Remember: the mortgage is just one component of that mission, not the mission itself.

A Closing Perspective

Every generation of veterans has returned from service to a different economy and a different housing market. Interest rates rise and fall. Local prices surge and cool. What does not change is the need for stability and the value of facing the numbers honestly.

The net-worth gap between owners and renters is not meant to shame renters or glorify homeowners. It is a signal. For veteran families who have already carried serious responsibilities in uniform, that signal is a reminder that financial readiness is the next phase of service, this time on behalf of your own household.

Renting can be a bridge. Owning, when approached with discipline and a realistic plan, can become an anchor. The task is to know where you are on that path, understand the facts, and move with purpose and focus.

For the Master Sergeant at that kitchen table, and for thousands like him, the decision about renting and owning is not just about this year’s lease. It’s about whether years of service are converted into lasting security: for themselves and for the generations who will follow.