Are we happier owning our home or renting?
Home ownership doesn’t make everyone happy, and owners also say there’s more to happiness. By Colleen Hawkes.
Adream home is often on the wish list for people buying a Lotto ticket. But does owning our own home make us happier than people who are renting, or vice
versa?
It turns out one answer doesn’t fit all. Mindworks psychologist Sara Chatwin says there are two very clear schools of thought when it comes to owning your own home, which directly impact on happiness.
‘‘There are the people who feel more grounded owning their own place,’’ she says. ‘‘It gives them the feeling that they are planning for the future and creating a legacy – something that can be passed on to the children. They have a pathway, a direction forward and they don’t mind having a mortgage (as a means to this end).
‘‘These people often find renting stressful. They feel they are throwing money away with every rent payment, and would rather be investing that money in property of their own.’’
Then there are the people who think the opposite.
‘‘These people feel a mortgage or a home of their own is a noose around their neck,’’ says Chatwin. ‘‘They feel really compromised being in that position and having to meet financial markers.
‘‘If these same people have a good, amenable renting situation, in other words they like where they are living, then they are as happy as Larry. But this very much depends on the rental situation and whether they think the rent is reasonable, if they have a good landlord and a good situation.’’
Whether you are happier renting or owning your own home also depends on where you are in life, the psychologist says.
‘‘A young couple with a baby may think a home of their own is where they want to be and that can be a motivation (to find happiness that way). It all depends where you are at, how old you are, where your motivation lies and whether you actually have a desire to own your own home.’’
Chatwin says owning a home is a very New Zealand thing, like number 8 wire – a measure of success that may be motivating for some. ‘‘But for others, being a homeowner is just not their goal. They think nothing of renting.
‘‘For some people the stress of a mortgage is very motivating – it keeps them on their toes, while for others a mortgage is an architect of misery.’’
Chatwin doesn’t believe we are hard-wired for a certain level of happiness. ‘‘You are the architect of your own destiny. You can become happy. Although it’s fair to say some people are wired a certain way, personality-wise, and might not achieve the level of happiness that others can.’’
Anna and Simon Tailby of Te Atatu Peninsula spent several years renting before buying, and appreciate the security of owning their own place: ‘‘It’s nice to know we have a permanent home for the children, and don’t have to worry about where we’d live next if the lease is not renewed,’’ says Anna Tailby. ‘‘It’s also good to know we have an investment, and something to sell should things not work out financially.’’
But Tailby says happiness is not dependent on the house ownership. ‘‘Owning a house has definitely made us happy, and provided a lot of happiness, but I don’t think continuing to rent would have stopped us being happy.
‘‘Part of the drive to own our own home was being able to ‘make it our own’. Simon really enjoys building and creating things so working on the house and garden is also a hobby for him, which feels a bit fruitless when you are renting. There’s also the sense of achievement and satisfaction that came with renovating the house ourselves.
‘‘Over several years, we have completely changed the inside, and created more indooroutdoor flow. We’ve been able to put in a vege garden, sandpit and loads of fruit trees, as well as a hedge and fence to increase privacy. This all contributes to being a bit happier – being able to do things the way we like.’’
Tailby says financially, however, owning a home has been more stressful than when they were renting. ‘‘That might also be because we added children into the mix and have gone down to 1.5 incomes as opposed to two. When renting, there was a lot more disposable income, however that money is now going into the house (mortgage), which is our investment.’’
But most things that make Tailby happier are unrelated to the house – she lists parenting, having happy times with the children, playgroups, relationships with family and friends, their jobs (registered nurse and engineer), trips away in the car, camping, outdoor adventures and hobbies.
Natasha King and Matt van der Haast bought their first home in Pukekohe nearly two years ago.
‘‘We have found owning our own home has made life easier for us in many ways and has taken the stress out of renting,’’ says King. ‘‘It has brought us stability in the sense we know we won’t be kicked out of our home; that our rent won’t go up without warning; or that we would have to move into a smaller home to afford the cost of rising rent.’’
King says being in charge of their own property has allowed them to put down roots in the neighbourhood.
‘‘We are also able to make simple changes to our home and not have to jump through hoops with a
landlord. Although owning our own home comes with more responsibility and accountability, it also brings security, flexibility and a sense of home that renting never gave us, because we could never become attached to where we were in case we were forced to leave.’’
Homeowner Nathalie Ong and her husband of West Auckland sacrificed a lot to own two homes by the age of 30. She doesn’t believe they are necessarily happier than their friends who are still renting.
‘‘It really depends on your personal aspirations and goals,’’ Ong says. ‘‘I guess for us owning our own home was our main goal and it definitely made us happier, However for some people, their goal isn’t to own their own home and they are happy renting since they have other priorities.’’
Ong doesn’t feel home ownership has made her more certain of the future.
‘‘No, definitely not. No-one knows what the future holds. But we really wanted our child to have a foundation and by owning our own home, we can pass that onto her and future generations.’’
Stress over the bills also doesn’t change. ‘‘If you have a mortgage it’s never relaxing. You have more bills to pay and juggle, and we don’t find that relaxing. There will always be that worry, especially if you have kids to support or extended families to provide for.
‘‘But with any challenges comes reward, so the quicker you pay off that mortgage the sooner the reward will come. For us saving and paying off the mortgage is the number one priority.’’
‘‘We are very happy that we own our own home and we are grateful for that, however, that’s not our only happiness.
‘‘Having gratitude and humility makes us happier everyday. No matter how many properties you own or how big your house is, or how nice your car is, if you aren’t grateful, those things are never enough. That’s superficial happiness.’’
Ong says comparisons can be a trap for young people. ‘‘I think our generation tends to get too caught up with what friends have, or what other people are doing, and they tend to compare themselves. With social media, especially, it’s so easy to envy and to feel unhappy. It’s important to value the little things in life and be thankful.
‘‘For us happiness is having a roof over our head, good health, stable jobs and being surrounded by supportive families and friends.’’
Rachel, one of the first tenants into the new social housing properties in Ta¯ maki, can identify with this sentiment.
She moved into a new four-bedroom house with her four young childen at the end of 2017 and said being able to rent one of the brand new homes was a dream come true.
The family had formerly lived in a an older social house, and prior to that they were all squeezed into a single room in her brother’s house.
‘‘It’s surreal,’’ Rachel said. ‘‘It’s still sinking in. I found myself saying to the children, ‘don’t touch the walls’ because it was all so new and amazing. I never thought I’d ever be able to rent a house, let alone something like this.’’
Rachel, who is studying for a degree, anticipates moving on to free up the house for another family once she is in the workforce.
This article is part of the Good Life Guide, an editorial project sponsored by Skoda. We have produced it independently, to the same standards applied to the rest of our journalism.