CHAPTER 2 Owning vs. Renting Owning your own home might be one of the defining qualities of the “American Dream”: the set of ideals that includes opportunity for prosperity and success and an upward social mobility for the family and children, achieved through hard work. 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 are values many of us seek. Lifestyle plays a big role in the decision to own versus rent. Homebuying is most often driven by household formation, such as marriage and growing a family. The U.S. homeownership rate has fluctuated between 62% and 70% since the 1950s. Most young people begin their independent lives renting an apartment, maximizing lifestyle flexibility and minimizing the hefty upfront costs associated with purchasing a home. As they build careers, save money, and start families, many choose to buy a home, recognizing that homeownership, as opposed to rental living, is more appropriate for their growing family’s needs. At the other end of the age spectrum are homeowners nearing retirement who may desire to sell their homes, downsize, avoid the maintenance and other obligations, and go back to renting.
WHICH IS BEST?
Is it better to rent or buy a home? Most adults ask themselves this at some point as they form their goals and plan for the years 13
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