In January 2026, the question of whether to rent or buy has become more nuanced than ever. Mortgage rates hover around 6.09% after easing from 2025's highs, yet home prices continue climbing modestly. Meanwhile, rents in Myrtle Beach and the Grand Strand area remain stable after years of rapid growth. For buyers and renters weighing their options, the answer depends on personal circumstances—not on whether one choice is universally "right."

The Cost Comparison: What the Numbers Actually Show

According to NAR data and FRED economic indicators, the rent-versus-buy calculation has shifted significantly in different markets. In South Carolina as a whole, buying remains competitive with renting thanks to the state's relatively affordable home prices. The median South Carolina home price sits at $353,800 (October 2025, up 3.1% year-over-year), while median rent averages $1,800 statewide.

In Myrtle Beach specifically, the median listing price reaches approximately $340,000 according to FRED data, while median rental rates hover near $1,700–$1,950 per month across the Grand Strand area. For renters earning median household income, renting typically consumes about 29–31% of income—right at the recommended 30% threshold. Buying a median-priced home in the Myrtle Beach area, by comparison, requires approximately $100,000–$120,000 in annual income to keep housing costs manageable when factoring in mortgage, taxes, insurance, and maintenance.​​

Why Renting Makes Sense Right Now

Renting offers flexibility that buying cannot match. When mortgage rates are in flux and home prices remain elevated, renting removes the risk of being locked into an unfavorable long-term financial commitment. Renters avoid closing costs (typically 2–5% of the purchase price), down payment requirements (even with minimal 3–5% down, this means $10,200–$17,000 on a $340K home), and ongoing maintenance and property tax obligations.

According to NAR's 2025 buyer profile, renters who eventually buy report that high rent and student loan debt are the two biggest barriers to saving for a down payment. Yet for those not yet ready to commit capital, renting provides housing stability without the down-payment squeeze. For first-time buyers especially, the barrier remains substantial: the median down payment for first-time buyers was 10% in 2025, the highest since 1989—meaning roughly $34,000 upfront on a median home, plus 2–5% in closing costs.

For buyers in Myrtle Beach specifically, the condo market remains weighted toward sellers: inventory levels and market conditions continue to favor negotiation, making a rental period an excellent time to observe the market before committing.​

When Buying Wins: The Locked-In Rate Advantage

The strongest argument for buying is rate-lock protection. A 30-year fixed mortgage at today's 6.09% rate represents a permanent ceiling on your largest monthly expense. Renters, by contrast, face the risk of rent increases. According to FRED data, South Carolina's average rent has remained essentially flat year-over-year, but historical trends show that extended periods of stability are often followed by renewed growth.​

Once rent increases resume—and economic patterns suggest they will—homeowners with mortgages maintain payment certainty. Repeat home buyers in the 2025 NAR survey had a median down payment of 23%, meaning most financed homes well below today's prices. For younger or first-time buyers, the story is different: acquiring a 10% down payment remains the dominant hurdle.​

Buying also builds equity. A home purchased today at $340,000 in the Myrtle Beach area positions you to capture appreciation—forecasted at 2–3% annually by NAR economists—which compounds over a 15-year ownership horizon (the median holding period buyers cite). Rent payments build no equity at all. Over 15 years, even modest 2% appreciation adds roughly $102,000 in equity on a $340,000 home purchase.​

The Down-Payment Barrier: A Critical Factor

First-time buyers should reckon honestly with the down-payment reality. While FHA loans allow 3.5% down, VA loans can require 0%, and conventional 20% purchases eliminate PMI, the median first-time buyer puts down 10%—about $34,000 on a $340,000 home. That capital, plus closing costs of $6,800–$17,000, means $40,000–$51,000 upfront.

NAR data shows first-time buyers cite personal savings (59%) and financial assets (26%) as their down-payment sources, far more than gifts or loans from relatives. For renters whose savings are being consumed by rent itself, this creates a genuine catch-22. Renting longer while building savings—accepting 2–3 years of rent growth—may be the realistic path forward for many.​

The Myrtle Beach Market Context

The Grand Strand housing market in early 2026 shows distinct segments with different buyer advantages. Inventory levels by property type reveal important distinctions: single-family homes remain competitive, while condos offer more negotiating power. New construction incentives remain available, and median days on market remains reasonable for buyer evaluation.

For renters considering a transition: if you're targeting a condo or resale home in Myrtle Beach, market conditions are negotiable. If you're set on new construction, expect builders to offer rate buy downs or closing-cost assistance rather than price reductions. These incentives can lower your effective borrowing cost meaningfully.​

The broader South Carolina market shows promise: December 2025 home sales were up 8.3% year-over-year statewide, with median prices at $377,200—suggesting healthy buyer demand despite elevated rates. For Myrtle Beach specifically, this translates to more inventory choices and better opportunity for intentional buyers.​

Making Your Decision

Rent if: You're uncertain about staying in Myrtle Beach long-term, lack a $34,000+ down payment, have significant student loan or other debt, or want to preserve liquidity for life changes (job moves, family needs, career transitions). Renting in the current Myrtle Beach rental market stabilizes your housing cost and removes execution risk while you observe the market.

Buy if: You have a solid down payment saved (at least 10%, ideally closer to 15–20%), plan to stay in your home for at least 7–10 years, have stable income and low debt relative to earnings, and are comfortable with maintenance and property-tax obligations. The 6.09% rate is competitive historically, and locking it in prevents exposure to higher rates down the road.

The 2026 housing market is neither a buyer's market nor a seller's market—it's a personal-circumstances market. Carolina Crafted Homes stays current on Myrtle Beach market trends and can answer questions about whether buying or renting aligns with your goals. Reach out anytime for guidance—no pressure, just straightforward expertise.

FAQs

Q: Is it cheaper to buy or rent in Myrtle Beach in 2026?

In the Myrtle Beach area, buying can be competitive with renting due to South Carolina's relatively affordable home prices. A median home priced at $340,000 costs roughly $2,100–$2,300/month on mortgage, taxes, and insurance—comparable to median rent of $1,700–$1,950. However, renters avoid down-payment requirements and maintenance costs, while buyers build equity. The better choice depends on your financial position and time horizon.

Q: What are current mortgage rates in Myrtle Beach?

As of January 2026, the national 30-year fixed mortgage rate averages 6.09%, down from 2025's highs of 6.6–6.9%. Mortgage rate forecasts suggest rates will hover near 6.0% throughout 2026. These rates represent substantial monthly payment differences—locking in at 6.09% protects against future increases.

Q: How much down payment do I need to buy in Myrtle Beach?

First-time buyers can use FHA loans with as little as 3.5% down, VA loans with 0% down (if eligible), or conventional mortgages with 10% down. For a $340,000 Myrtle Beach home, that means $11,900–$34,000 upfront, plus 2–5% in closing costs. Most successful first-time buyers in 2025 saved personal funds or tapped financial assets rather than relying on family gifts.

Q: Should I wait for home prices to drop before buying in Myrtle Beach?

NAR forecasts show modest home price appreciation of 2–3% through 2026. South Carolina prices have risen 3.1% year-over-year through October 2025. Waiting for significant drops is unlikely to materialize in the near term. If buying makes financial sense today, delaying may cost you both price appreciation and the certainty of a locked-in mortgage rate.

Q: What's the rental market like in Myrtle Beach right now?

Myrtle Beach rents averaged $1,700–$1,950/month as of early 2026, essentially flat year-over-year. South Carolina statewide showed a slight decline (-1.9% YoY) to $1,800 average. Renting still offers flexibility, but advantages are gradually fading as new construction catches up to demand. The rental market remains stable but not declining.

Q: How long should I plan to own a home to make buying worthwhile?

NAR data shows buyers expect to stay an average of 15 years, though 28% say they're never moving. As a minimum, plan on 7–10 years to recoup closing costs and capture meaningful equity appreciation in a normal market. Shorter ownership horizons favor renting, as transaction costs (buying and selling) consume gains.