Rent vs. Buy in Boston 2025-2026: The New 8-Year Break-Even Reality

Traditional 5-year rule is dead—break-even now 7-10 years due to high transaction costs and flat appreciation. But 2025's new $40K SALT cap creates $1,300+/month tax savings for high-income buyers, making purchase viable if staying 7+ years.

Renters debating buying in Boston metro, especially high-income earners who can leverage new SALT cap.

• •Break-even extended from 5 to 7-10 years: 8-9% transaction costs + 6% rates + slower appreciation
• •New federal SALT deduction cap ($40K for 2025-2029) reduces ownership cost massively for high earners
• •Winchester example: $1,300/month tax savings transforms rent-vs-buy math
• •Rent if time horizon under 7 years or you value flexibility over equity building
• •Buy if staying 7+ years, have stable high income ($250K+), and can handle illiquidity