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Buying in an LCOL area can significantly accelerate wealth building if you're disciplined. The money saved on housing can be aggressively invested. However, consider liquidity – selling a house in some LCOL areas can be slower. Also, ensure the LCOL area has good internet and an airport if you need to travel for work occasionally or want to see family.
Renting in a HCOL city, even as a remote worker, keeps your options open if your remote job unexpectedly ends or if you decide you *do* want local networking or hybrid opportunities later. You're paying a premium for that flexibility and access to amenities. It really depends on your risk tolerance and how tied you are to that specific remote job long-term.
Consider the 'total cost of opportunity'. If buying in LCOL frees up $1000/month compared to HCOL rent, what could you *do* with that $1000? Invest it, travel, upskill? That could be more valuable long-term than the cachet of a HCOL address if your job is remote anyway. But you lose the serendipitous networking of a major city.
Don't just think about job prospects; think about quality of life. If the amenities and social scene of a HCOL city are crucial for your happiness, the extra cost of renting might be worth it for your mental well-being, even if it's not the 'optimal' financial spreadsheet answer. Remote work can be isolating; location matters for lifestyle.
The 'buy vs. rent' debate also hinges on how long you plan to stay put. If you might move again in <5 years, buying (even in LCOL) often doesn't make financial sense due to transaction costs (closing costs, realtor fees). If you're truly settled for the long haul, buying builds equity. But for a remote worker who *could* move easily, renting offers freedom.
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