Renters give a lot of reasons why they want to stop renting and start owning. Some dream of future possibilities, and others want stability.
We’ve grouped what renters say into categories.
Owning a home is stable
When you rent, you can move as often as you like, to anywhere in the world you want. By design, you have no roots, which is freeing to some people.
But you’re also at the mercy of your landlord and forfeit control. You don’t control your rent, you don’t control your lease, and you don’t control your home. You can’t make improvements. You can’t plan ahead.
Renters extol the virtues of being flexible – but they’re also forced to be that way.
Homeowners experience the opposite.
When you own a home, your housing and your life get stable. You know what your monthly payment will be, and know it won’t go up. You know where you’ll live for the next few years, and know that you won’t get kicked out with just 30 days’ notice.
When you own a home, you can paint your walls and hang up art. You can build and improve however you want.
For some people, the freedom to makes choices is more freeing than renting can ever be. Maybe this describes you.
Owning a Home Builds Wealth
Owning a home is a reliable means to build generational wealth.
Consider this: Over the last 100 hundred years, the value of U.S. real estate is up 3.2 percent per year, on average. Because of compounding interest, then, a homeowner with a 10-year horizon might expect a 37% gain before it’s time to sell.
Renters don’t get that same money.
Real estate’s power as a wealth-building tool is undeniable. For many people, owning a home begins a pathway to a secure retirement. Real estate builds net worth that benefits future generations.
Owning A Home Creates Pride
There’s a pride that comes with buying your first home. Buying your first home is an important life milestone, and 90% of homeowners believe homeownership is part of the American Dream.
Data supports the assertion.
According to the National Association of REALTORS®, 51% of first-time home buyers said they bought their first home to satisfy a desire to stop renting and start owning. The next most popular reason – “a desire for more space” – garnered just nine percent of the vote.
It’s no surprise that homeownership draws in renters. When you own a home, you live a stable life with independence. You’re part of a community and get to build roots in a neighborhood. You control your future and your household wealth.
