I inherited $400K that's now worth $900K — everyone says I should buy a home, but am I better off staying a renter?

For years, people have been telling Lucy to buy a home. And she can certainly afford to. Seven years ago, she inherited about $400,000.

Instead of spending it, she invested the money and left it alone. Today, that inheritance has grown to roughly $900,000, thanks to a strong stretch in the markets. But at 28, Lucy isn't convinced buying property is the obvious next step.

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She isn't someone sitting on a six-figure salary wondering what to do with extra cash. She works in a restaurant, pays her bills, and has been careful with the one big financial break she received. She pays $2,000 a month in rent, has no debt, no kids, no car payment, and few major expenses. Her apartment is also rent stabilized, which means she has more predictability than many in her situation. She signs two-year leases and knows her rent can't suddenly jump by an amount that blows up her budget.

However, her mom sees things differently. To her, Lucy is in the perfect position to buy. One-bedroom condos in the area sell for about $400,000 to $600,000, and Lucy could purchase one without taking on a mortgage.

It's the kind of situation that challenges the usual rent-versus-buy advice. With home prices still out of reach for many buyers, the old advice to "buy as soon as you can" doesn't always fit every situation.

There are plenty of people who will tell you renting is "throwing money away," but that doesn't tell the whole story.

Owning a home comes with costs that don't disappear after closing day. Property taxes, homeowners insurance, condo fees, maintenance, and the occasional unexpected repair all become part of the deal. Even someone who pays cash still has ongoing housing costs.

For Lucy, the comparison gets especially interesting. If she used $500,000 of her investments to buy a condo outright, she would eliminate her monthly rent of $2,000, or about $24,000 a year. But she would also be taking a large amount of money that is currently invested and moving it into a single property.

The question Lucy keeps coming back to is whether saving $24,000 a year in rent is worth giving up the opportunity for that $500,000 to keep working for her in the market.

A quick look at the numbers helps explain why she isn't rushing into a purchase. If that money stays invested for decades, even modest growth could add up over time. Of course, there's no guarantee the market will outperform real estate — or that either option will deliver the same returns year after year.

Markets can fall, home values can rise, and every choice comes with tradeoffs. But that's what makes Lucy's situation different from someone trying to buy their first home while struggling to save a down payment. She isn't trying to get into the market because she has no other path to building wealth. She already has one.

That tradeoff is what makes her situation distinct from many first-time buyers.

The inheritance she received has more than doubled over the past seven years simply because she left it invested. However, she knows that kind of growth isn't something she can count on repeating. But over long periods, diversified investments have historically rewarded investors who stay patient.

Lucy also has something many renters are missing right now: stability. Because her rent is regulated, she isn't facing the same level of uncertainty as someone whose rent can jump sharply at renewal time. If her housing costs remain manageable, she can continue investing and keep building wealth without feeling pressure to make a decision.