Two of the biggest financial decisions students face, often at the same time, are where to live and whether to rent or eventually buy. Neither has a universal right answer. Both depend on your timeline, your finances, and what you’re trying to do with your life over the next few years. This issue breaks down the key considerations for each.

Renting vs. Buying

The internet loves to frame this as a debate with a winner. There isn’t one. Renting and buying serve different situations, and the better choice depends entirely on your circumstances.

The case for renting

Renting costs less to start. You typically need your first month’s rent plus a security deposit, and that’s it. Your landlord handles repairs and maintenance. Your monthly expenses are predictable for the length of your lease. And if an opportunity comes up in another city, you can take it without selling a property first.

For most students, this flexibility matters more than the financial arguments for buying. You don’t yet know where your career will take you. Locking yourself into a property before that picture is clear carries real risk.

The case for buying

Every mortgage payment builds equity you keep. Renting builds equity for your landlord instead. A fixed-rate mortgage gives you stable monthly payments that don’t increase year over year the way rent can. And owning a home gives you the freedom to modify and customize the space.

The catch is the upfront cost and the commitment required to make it worth it. Buying only makes financial sense if you plan to stay in one place for at least five to seven years. Moving before that window closes often means selling at a loss once you factor in closing costs and transaction fees.

The honest framing

If you’re a student or recent graduate and uncertain where you’ll land after school, renting is almost always the right call. Buying becomes worth exploring when you have a long-term plan, strong credit, solid savings, and you’re confident in your location. If homeownership is on your radar, the FHSA is worth opening now, even as a student.

A simple rule of thumb:

  • 0 to 5 years in one place: Rent.
  • 5 to 7+ years in one place: Buying may be worth running the numbers.

What buying actually costs

The down payment gets most of the attention, but it’s not the only upfront expense. Closing costs typically run 1.5% to 4% of the purchase price on top of that. After moving in, your monthly costs include the mortgage payment, property taxes, home insurance, utilities, and a budget for repairs and maintenance. Homeowners spend an average of 1% to 2% of their home’s value on maintenance per year.

Renting has its own full cost picture too: monthly rent, tenant insurance, utilities, parking if applicable, and the possibility of annual rent increases.

Moving Out for the First Time

Signing your first lease is a bigger financial step than it looks on paper. Before you commit to a neighbourhood, spend time in it. Walk around. Check transit routes, proximity to groceries, and noise levels at different times of day. Edmonton’s trip planner lets you map your actual commute before you sign anything.

Know your full monthly number

Rent is the starting point, not the total. Add everything up before committing:

  • Rent
  • Utilities (electricity, heat, water — sometimes included, often not)
  • Internet
  • Groceries
  • Transportation (transit pass, or gas and insurance)
  • Tenant insurance (usually under $20/month but easy to forget)

Most students underestimate this number. Running the full calculation before you sign is the single most useful thing you can do.

Living alone vs. roommates

Living alone costs more and gives you full control of your space. Roommates bring your monthly costs down and make a wider range of neighbourhoods affordable. Neither option is better. The right one depends on your budget and how you prefer to live.

One practical note: if you’re moving in with roommates for the first time, set expectations in writing before move-in day. Shared expenses, cleaning responsibilities, guests, and quiet hours are easier to agree on before they become friction.

You don’t need to furnish everything at once

Start with what you need and add over time. A bed, a few kitchen basics, and a place to sit are enough for month one. Buying everything upfront is how students drain their savings before building any kind of financial cushion. Thrift stores and Facebook Marketplace will serve you well.

Terms Worth Knowing

Cost of living — The total monthly amount required to cover your basic expenses: rent, groceries, transportation, utilities, and school costs. Two students in the same city can have very different costs of living depending on their housing situation and spending habits.

Fixed vs. variable expenses — Fixed expenses stay the same every month: rent, phone bill, subscriptions. Variable expenses change: groceries, gas, eating out, clothing. Separating these two categories makes budgeting easier, because the variable ones are where you have room to adjust.

Security deposit — Money paid to your landlord before moving in, typically equal to one month’s rent. You get it back at the end of your lease if the unit is in the same condition as when you moved in. Document the unit’s condition on move-in day with photos and keep them somewhere you can find them.

This Week’s Recommendations

Read: I Will Teach You to Be Rich by Ramit Sethi. Approachable and practical, written for people who are not already finance experts. Covers saving, budgeting, spending without guilt, and building habits that hold.

Listen: Money Explained on Netflix or as a podcast. Short episodes covering credit, student loans, and financial scams. Quick and genuinely useful.