In the United States, housing costs continue to rise. Housing has become a front-of-mind issue for politicians, especially with the coming November general election. President Joe Biden proposed a tax credit to cut mortgage costs. But in the meantime, Americans face a tough choice: rent or own?
Traditional wisdom says it’s best to buy. But a new study shows some homeowners wish they still rented—and some renters have no desire to take the leap to ownership.
According to the research, 90% of former renters report feeling happier since purchasing a home. But it’s not all sunshine and picket fences. Just over half also admit owning a house is pricier than expected.
Why is that? Usually, renters don’t pay for regular repairs. That responsibility falls to the landlord or rental company. Some renters even receive free landscaping or utilities. But when you own your home, you’re on your own. The bills add up.
So why purchase?
In the study, homeowners pointed out advantages like stability. In the United States, rental evictions have hit record numbers. (See Rent on the Rise.) Renters may afford rent this year. But what about next year? Homeowners usually lock in a consistent mortgage payment with a bank or lender.
Plus, home-owning is an investment. Rental payments simply disappear from renters’ wallets. But mortgage payments contribute to building equity—especially if the owner stays more than just a few years. Equity is the value of the house the homeowner has paid for, plus any increase in that home’s value over time. That equity belongs to the homeowner, should he or she choose to sell.
But buying a home takes money up front too. Many renters say they can’t afford a down payment. Other complaints: interest rates are too high, or their credit scores are too low. (Without a good credit score, it’s hard to convince a lender to loan you money!) Seventy-two percent of renters claim the climbing cost of monthly rent prevents them from saving money. Some feel trapped.
New regulations may also change the market. Real estate agents make money through commissions—usually 6% of the home’s selling price. Typically, that money comes from the seller. But that may change. Home buyers may soon pay their own buyers’ agents. That could make the costs more prohibitive—or save some on fees.
In this world, housing presents many tricky dilemmas. But God talks about another sort of home. Jesus tells us that His Father’s house has many rooms—and He’s preparing a place for you.
Why? Housing is one of the basic human needs, but making it work involves tough economic questions.
