When topics like homeownership and fulfilling the American Dream come up, most of the conversations zero in on the financial benefits. But two newer studies speak to the non-financial payoffs of homeownership that may be just as important to new buyers.
Renters say: Once you own, you’ll never go back
Bank of America questioned homeowners in their recent survey: “Does owning a home make you happier than renting?” Ninety-three percent of the survey participants said yes, and only 7 percent answered no.
The survey also showed that:
- Over 80 percent of respondents said they would not rent again.
- Buying a house was the “best decision they have ever made,” 88 percent of people confirmed.
- 79 percent stated that owning a house had positively changed their lives.
Talk of “emotional equity” gained through homeownership also came up among the survey group. More than half of the existing homeowners in the study considered their house a space to create memories, compared to 42 percent who saw it as a monetary investment.
Homeownership does build wealth, and the survey also indicated it enriches quality of life:
- Since buying a home, relationships with loved ones and family improved for the better, 67 percent of current owners said.
- Quality of social life was also gratifying, 78 percent of homeowners confirmed.
- The amount of time spent on passions and projects since buying was satisfying for 82 percent of homeowners.
- And 75 percent of homeowners had time to start new hobbies after purchasing a house.
Maybe you think you can’t afford to buy, but you don’t actually know for sure. If you’re like most renters, you’re closer than you think.
Overall, homeowners appear to be happy and better off.
Compared to owners, 5x more renters regret signing their lease
Zillow’s latest Housing Aspirations Report showed that 45 percent of renters regret renting again instead of buying. That’s over five times the amount of homeowners, at 8 percent, who said they regret buying rather than renting.
The report states that among regretful renters, there are four main reasons why:
- Not getting to build equity – 52 percent.
- Not getting to improve or customize a rental – 52 percent.
- Paying sky-high rent prices – 50 percent.
- Missing out on private outdoor areas – 49 percent.
Viewing both studies together paints the picture that renting’s temporary advantages don’t come close to matching homeownership’s long-term effects. Having financial equity helps, but most homeowners are also seeing invaluable “emotional equity” gains.
Ready to stop renting? There’s no time to waste
It’s tough to hear that your monthly rent is helping your landlord grow wealth in their sleep. By becoming a homeowner, you have the chance to do the same. Start by getting prequalified and learn about your low or no down payment options. Connect with a local loan officer who simplifies mortgage and makes it feel like you’re talking to a friend. Then get packing: Our brand-new borrowers are extra-happy when they find out they can get home in 10 days.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources deemed reliable but not guaranteed.