Renting vs. Owning: A 2026 Financial Comparison for Merritt

Deciding whether to continue renting or to invest in a home is one of the most significant financial decisions you will make. In the Nicola Valley, the "buy vs. rent" conversation looks different than it does in larger hubs like Kamloops or Kelowna.

As we move through 2026, here is a look at the current financial landscape in Merritt to help you determine which path makes sense for your budget.

The Cost of Renting in Merritt

The rental market in Merritt has seen steady demand. As of early 2026, the average monthly rent for a one-bedroom apartment or suite in town ranges from $1,300 to $1,800, while two-bedroom units are averaging roughly $2,100.

While renting provides flexibility and eliminates maintenance costs, it does not build equity. Over a five-year period, a tenant paying $1,800 a month will spend $108,000 in rent—none of which is recoverable.

The Cost of Owning in Merritt

According to the City of Merritt’s 2026 Financial Plan, the average residential single-family home in Merritt is currently valued at approximately $460,000.

If you were to purchase a home at this price point with a 10% down payment ($46,000) and a 5-year fixed mortgage rate (currently averaging around 3.89%), your monthly mortgage payment would be approximately $2,150 (excluding taxes and insurance).

While the monthly "carrying cost" of owning is higher, a portion of every mortgage payment goes toward your principal, acting as a form of forced savings.

2026 Incentives for First-Time Buyers

To bridge the gap between renting and owning, there are several provincial and federal programs available to Merritt residents in 2026:

• BC First-Time Home Buyers’ Program: This program can eliminate the Property Transfer Tax on homes with a fair market value of up to $835,000. For a $460,000 home, this represents a significant upfront saving of several thousand dollars.
• First Home Savings Account (FHSA): This allows you to save up to $8,000 per year (to a lifetime limit of $40,000) for a down payment, with contributions being tax-deductible and withdrawals being tax-free.
• RRSP Home Buyers' Plan: In 2026, you can withdraw up to $60,000 from your RRSP to use toward a down payment, tax-free, provided it is repaid over 15 years.

Conclusion

Renting offers lower monthly overhead and is often the right choice for those who value mobility or do not have a down payment saved. However, for those planning to stay in the Nicola Valley for five years or more, homeownership remains the primary vehicle for building long-term wealth.

If you are curious about what your specific "rent vs. own" numbers look like, you can use the CMHC Mortgage Calculator to run the math for yourself.

As an advocate for homeowners in Merritt, I am always here to help you weigh these options. Feel free to reach out if you would like to discuss the current inventory or the local market conditions.

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