CHAPTER 2 Own vs. Rent?
Owning your own home might not be one of the defining qualities of the “American Dream,” the set of ideals that includes an opportunity for prosperity and success, and upward social mobility for the family and
children, achieved through hard work. However, homeownership is surely ingrained as one of the strongest representations of that vision — 66% of Americans own their own home, and more hope they will or wish they did. Something about homeownership plucks a strong chord with Americans. Financial security, permanency, status, and pride — whatever the reason for wanting to own your own home — there has never been a time in recent memory when the health of our credit reports meant so much. Lifestyle plays a big role in the decision to own versus rent. Home buying is most often driven by household formation, such as marriage and childbirth. Less than 40% of people under 35 years old own homes, 60% of people over 35 years old own homes, and more than 80% of people 65 years old or over own homes. Interestingly, for the millennial generation, the primary reason for buying a home is owning a dog - as many rentals do not allow pets. The U.S. homeownership rate has fluctuated between 62% and 24
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