Why homeowners are happier than renters

A NEW STUDY SHOWS THEY EXPERIENCE A HIGHER FINANCIAL WELL-BEING

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Owning a home can have its ups and downs. While you have the opportunity to build equity and personal wealth, customize your dwelling to your liking, and enjoy some tax breaks, you also have a lot more responsibility — including the costs and hassles of upkeep, property taxes, and insurance.

Yet the results of a new report reinforces what experts have long maintained: that buying and owning a home is usually better than renting.

The 2019 Bank of America Homebuyer Insights Report reveals that 93 percent of Americans are happier after purchasing a home, and 83 percent would not want to return to renting. What’s more, 88 percent of respondents believe that buying a property is the best decision they’ve ever made; and nearly

8 in 10 agree that owning a residence has changed them for the better.

So why are owners better off and more content than those who rent? Kathy Cummings, homeownership solutions executive for Charlotte, North Carolina-based Bank of America, says the reasons are multifold.

“Homeownership offers mental, emotional and financial stability,” she says. “Emotional stability because more people are buying homes for emotional reasons like making memories rather than as a financial investment (58 percent vs. 42 percent, respectively). Financial stability because, when compared to prospective buyers, current owners have higher levels of satisfaction with many aspects of life, including their financial well-being (42 percent vs. 77 percent, respectively). And mental stability, as having a space you can call your own inspires new ideas on how to spend your time. Seventy-six percent of owners, for instance, pursue new hobbies like landscaping, gardening, cooking, and remodeling.”

Chase Lawson, bestselling author of the 2019 book “Financial Freedom: Breaking the Chains to Independence and Creating Massive Wealth,” echoes those thoughts.

“When you own a home, as opposed to renting, you feel more attached to and proud of your residence. When renting, you have more fluidity and it’s easier to move somewhere new, which keeps renters from becoming emotionally attached to their living quarters,” says Lawson.

While home prices remain high and out of reach for many renters, the truth is that rentprice inflation has outpaced home prices in many areas.

“Rents in many markets have skyrocketed and will continue to get more expensive. With a home, the only two main things that increase when you have a fixedrate mortgage are the property taxes and costs of maintenance and improvement,” notes Aaron Marshall, CEO/ co-founder of Keyrenter Property Management in Midvale, Utah.

Also, Lawson says you can likely count on housing values rising 3 percent to 5 percent annually, depending on your market, which can make owning a worthy investment.

“When you rent, every dollar you pay, you will never see again,” adds Lawson. “By contrast, when you own, you have something tangible you can leave to your next generation.”

That’s not to say that buying and owning a home is ideal for everyone, of course.

“Renting gives you an opportunity to explore an area before planting roots. Single people, younger people, folks who need flexibility, and those who are new to an area are probably better off renting,” Marshall adds.

Also, “if your job is likely to relocate you in a short period or if you face uncertainty in your near future, renting may be a better option,” says Lawson.

If you’re on the fence and not sure whether you should buy or rent, do your homework.

“Consult a lending specialist to get an assessment of your finances. Consider where your life is headed and what you want to accomplish along the way,” recommends Cummings. “This can help you determine if you’re ready to buy soon or if it makes more sense to rent for the time being.”