CHAPTER 2 Advantages of Buying vs. Renting
Should you buy or rent a home? There is no “right” answer, and what works for one person or family might not be appropriate, doable, or even desirable for another. There are certainly pros and cons for both, and much of it depends on your situation, life circumstances, lifestyle, finances, and dreams. Owning a home has for decades been considered one of the defining characteristics of the “American Dream,” demonstrating a certain level of priorities, accomplishment, success, status, security, and hard work. Not everyone owns a home and not everyone wants to — but many who don’t wish they did, or are working toward getting that piece of the Dream. Today, about two-thirds of Americans own their own home, and many more are working toward their dream of homeownership, or wish they could get there one day. Lifestyle and age are two of the biggest factors in the buy-vs-rent decision. Home buying is usually driven by household formation; for example, when couples get married, they often begin with renting but start saving to buy their first home before deciding to start a family. Other families who rent choose to buy a home when their family expands and more children (or pets) join the family. Millennials have also reported that the primary reason for buying a home is owning a dog, as many rental properties won’t allow pets — especially dogs. Age is another factor; in general, the older you are, the more likely you are to own your own home. Currently, fewer than 40% of people younger than 35 own homes, but about 60% of people 35 6
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