The Pros and Cons of Buying Versus Renting in the
Fox Cities in 2025

In 2025, the housing market in the Fox Cities—especially Appleton and surrounding communities—continues to reflect statewide trends: tight inventory, rising prices, and affordability challenges. As your trusted community bank, we are here to help you navigate the decision to buy or rent with clarity and confidence.

Buying a Home in the Fox Cities: Pros and Cons

Pros:

1. Building Equity and Wealth
   Homeownership remains a key path to generational wealth. Despite affordability challenges, owning a home allows you to build equity over time.
2. Stable Monthly Payments
   Fixed-rate mortgages offer predictability, especially important as inflation and interest rates remain elevated. (WBA Economic Resilience Report).
3. Community Investment
   Buying in the Fox Cities means investing in a vibrant, growing community. Local banks—including American National Bank Fox Cities—play a vital role in supporting homeownership and economic stability.

Cons:

1. Affordability Challenges
   Home prices in Wisconsin rose 8% year-over-year through October 2024, while incomes remained relatively flat. This has pushed affordability to its lowest point since 2009. (WBA Housing Affordability Report).
2. Limited Inventory
   Wisconsin’s housing supply remains tight, with only modest improvements in listings. The average months of supply is still below the balanced market benchmark of six months. (2025 Housing Market Insights).
3. High Mortgage Rates
   Persistently high interest rates continue to sideline many first-time buyers. The WBA reports that affordability remains a top concern across the state. (Addressing Housing Affordability).

Renting in the Fox Cities: Pros and Cons

Pros:

1. Flexibility and Mobility
   Renting allows you to move easily for work or lifestyle changes—ideal for younger professionals or those unsure about long-term plans.
2. Lower Upfront Costs
   Renters avoid down payments and closing costs, making it easier to manage monthly budgets.
3. No Maintenance Burden
   Landlords handle repairs and upkeep, saving renters time and money.

Cons:

1. No Equity
   Rent payments don’t build ownership or wealth.
2. Rent Increases
   While rent growth has slowed in some areas, demand remains high due to limited housing supply.
3. Limited Control
   Renters may face restrictions on personalization and lease renewals.

Local Insights for 2025

• Appleton’s Market Is Competitive: Homes sell quickly, often with multiple offers. Inventory remains tight, and affordability is a growing concern (2025 Housing Market Insights).
• Workforce Housing Is a Priority: The WBA highlights initiatives to expand affordable housing across eastern Wisconsin, including efforts to support families earning up to 140% of the area’s median income (Executive Letter: 2025 Outlook).

Conclusion

It’s never too early to start planning! Whether you’re thinking about buying your first home or considering a rental, the decision is more nuanced than ever. Stop in to see me any time – I’m here to help you weigh your options and make the best choice for your future.

References

1. Addressing Housing Affordability in Wisconsin: https://www.wisbank.com/addressing-housing-affordability-in-wisconsin/
2. Economic Report: Modest Inventory Improvements Lead to Slight Growth in Home Sales: https://www.wisbank.com/economic-report-modest-inventory-improvements-lead-to-slight-growth-in-home-sales-but-affordability-challenges-remain/
3. 2025 Housing Market Insights: https://www.wisbank.com/2025-housing-market-insights-what-financial-institutions-need-to-know/
4. Economic Report: Wisconsin’s Economic Resilience in 2025: https://www.wisbank.com/economic-report-thriving-amid-turmoil-wisconsins-economic-resilience-in-2025/

Executive Letter: 2025 Economic Outlook: https://www.wisbank.com/executive-letter-2025-economic-outlook-insights-across-industries/