Stat Sunday: Owners Are Happier Than Renters

Owning a Home Makes More $ense

A significant majority of today’s home owners and renters agree owning a home is a smart long-term decision. According to a survey released by the National Association of Realtors®, 95% of owners and 72% of renters believe over several years it makes more sense to own a home. 

The American Attitudes About Home Ownership survey reported a majority of home owners and a strong percentage of renters “agree” or “strongly agree” that owning a home provides a healthy and stable environment for raising a family and that it helps them meet long-term financial goals. In addition, 93% of owners surveyed would purchase a home again. (No suprise there.)

However, owners and renters do not agree on everything. More than half of owners reported feeling very or extremely satisfied with the overall quality of their family life. Only 1/3 of renters reported the same level of satisfaction. According to Greater New Haven Assoication of Realtors home owners also report higher levels of self-esteem and happiness when compared to renters.  But don’t feel too bad for renters.  A majority surveyed plan on trading in their leases for mortgages and a better quality of life.  63% reported they are at least somewhat likely to buy a home at some point in the future.

Why Aren’t Renters Making the Leap Right Now?

In today’s market, many aspiring home owners are faced with worries about job security and creditworthiness. 3 out of 5 renters surveyed who said they are very or extremely likely to buy considered job security and credit worthiness to be obstacles. Also, 80% of renters noted that having enough money for a down payment and closing costs were also obstacles.  If you’re a renter, this is another good reason to contact a mortgage officer if you are thinking about buying real estate. They will look at your credit and can advise you on what to do to be in the best financial shape to get a mortgage.  See my previous post for more buyer tips.

When Buying is NOT the Best Choice

Buying a home isn’t always the best option for everyone.   There are many factors that go into the decision.  For example, is your job stable?  Do you plan on moving in a couple of years?  Good things to consider if you’re a renter thinking about becoming a home owner. Watch this quick video for more pros and cons of owning and renting.  

The American Attitudes About Home Ownership survey was conducted online within the U.S. and fielded October 6-20, 2010. A total of 3,793 adults, 18 and older were surveyed, including 1,880 home owners, 1,115 renters, and 798 young adults. All samples came from the Harris Poll online database and were weighted for age, sex, race/ethnicity, education, region and household income to be representative of the U.S. general population of adults 18 and older. Propensity score weighting was also used to adjust for respondents’ propensity to be online.
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