Should You Sell or Rent Your House in 2026?

Key takeaways

• Selling your house may be the right option if you need the proceeds to purchase your next home or you plan to move permanently.
• Renting out your house may be the right option if you plan to live in your home again, have a low mortgage rate, or want to generate rental income. 
• Your local housing and rental markets, financial situation, and long-term goals are major factors in deciding whether to sell or rent out your house.

Deciding whether to sell or rent out your house can be complicated in today’s housing market. There are now 58% more sellers than buyers nationwide, the largest gap in Redfin records. With more homes competing for fewer buyers, sellers may need to be more flexible on price or wait longer for the right offer, making renting worth considering for some homeowners.

The right choice depends on your local housing market conditions, your financial situation, and whether or not you want to take on the responsibilities of a landlord. In this Redfin article, we’ll outline what to know when deciding between renting or selling your house.

5 key questions to ask when deciding to rent or sell your home

If you’re considering renting or selling your home, here are some questions to help you get started. 

1. What are the rental prices in the area? Depending on local rents and your monthly mortgage payment, rental income may cover some or all of your mortgage. You’ll also need to factor in ongoing costs like homeowners insurance, property taxes, maintenance, and potential vacancies.
2. Do you need equity from your current home? If you’re planning to buy a new home, you may need the money from the sale of your old one for a down payment on your new house. The typical U.S. down payment amount is $64,000 or 15%, but keep in mind this amount varies by location, home type, and individual finances. If you can afford the down payment on your new home without selling your current one, renting out your home may make sense. 
3. What is the market like in your area? The housing market isn’t consistent across the country, and even different parts of larger metro areas can differ. Nearly three-quarters of the major U.S. metros are currently buyer’s markets, meaning sellers may face more competition, need to be more flexible on price, or wait longer for the right offer. If you live in one of the few remaining seller’s markets, stronger buyer demand may make it easier to sell your home and get a favorable offer. Your local market conditions can help you decide whether selling now or renting out your home makes more sense.
4. Will you live in the house again? If your move is temporary and you expect to return, renting may allow you to keep the home while generating rental income and continuing to build equity. If you don’t expect to live there again, consider whether owning and managing the property still fits your long-term plans.
5. Does your house have the potential to be a good rental property? Your home’s location and condition can affect its appeal to renters. Consider whether it’s up-to-date, near public transit or amenities, and if there are other rental properties in your area. 

What does it cost to rent out your house?

Renting your home can generate income, but it comes with ongoing responsibilities and expenses:

• Maintenance and repairs: Landlords are generally responsible for fixing things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind.
• Mortgage payments and HOA fees: If you have a mortgage or HOA fees, you’ll still need to pay these each month. Depending on your HOA rules and lease agreement, some HOA-related costs may be passed on to your renters..
• Landlord insurance: A standard homeowners insurance policy may not cover rental situations. You’ll likely need a landlord insurance policy, which typically costs anywhere from $800 – $3,000. It offers protection for rental-specific risks, like property damage. Your tenants should also carry renters insurance to protect their personal belongings.
• Finding tenants and potential vacancies: Finding the right tenant can take time and money, from advertising to conducting background and credit checks. As a result, potential vacancies may lead you to pay your mortgage and other expenses without any additional rental income.
• Property management (optional): Hiring a property manager can help take some of the day-to-day responsibilities, but it comes with a cost. Most companies charge a percentage of your monthly rent in exchange for communicating with tenants, arranging maintenance, and collecting rent.

What does it cost to sell your house?

Typically, the cost to sell your home is between 10% – 15% of the sale price. This percentage varies by market, size of your home, and how much you spend to prepare your home for sale.

• Commission and closing costs: Often, these are the highest costs of selling a home. Real estate commissions are negotiable and can vary by transaction. You can also expect to pay closing costs ranging from 1% – 3% of the sale price. 
• Home repairs: You may want to make upgrades or repairs to your home so it can stand out to buyers.
  

  Enhancing Your Home for Sale

  • Home improvements: From refinishing floors to fixing a leaky faucet, making small repairs and upgrades can increase the appeal and value of your home.
  • Staging and photography: Professional staging and photography services can help your home attract buyers, stand out from the competition, and potentially lead to a higher sale price. The average cost for staging is $1,849, while professional photography typically costs around $150 per hour.
  • Seller concessions: Buyers may negotiate for seller concessions such as loan fees, home repairs, or warranties, which could add to your overall selling costs.

  5 Reasons to Consider Renting Out Your House

  1. You’re moving temporarily: If you plan to return to the area in the future, renting out your home could be a viable option.
  2. You want additional income: Renting out your house can provide extra income and align with your financial goals.
  3. Strong rental demand: If there is high rental demand in your area and your home has appealing features, renting it out could be profitable.
  4. Long-term investment: Renting out your property as a long-term investment could offer potential value appreciation over time.
  5. Low mortgage rate: If your current mortgage rate is low and rental income can cover expenses, renting out your house may be advantageous.

  5 Reasons to Consider Selling Your House

  1. You’re moving out of the area: If you are relocating or managing a rental from a distance doesn’t align with your plans, selling may be the best choice.
  2. Need for proceeds: If you require the proceeds from your current home to fund your next property purchase, selling is a practical option.
  3. Favorable market for sellers: In a seller’s market, selling your house can be advantageous due to high demand and potentially higher prices.
  4. Avoiding landlord responsibilities: If you prefer not to take on the responsibilities of being a landlord, selling your home may be the right decision.
  5. Low rental demand: If rental demand is low in your area and expected rent won’t cover expenses, selling could be more financially viable.

  Should You Rent or Sell Your House?

  Ultimately, the decision to rent or sell your house depends on various factors such as the housing market, your goals, and the rental potential of your property. If your home is attractive, you have time to manage it as a rental, and rental income can cover expenses, renting may be ideal. On the other hand, if the market favors selling, you’re moving away, or need proceeds for your next purchase, selling might be the better choice.