The most recent Housing Pulse Survey released by the National Association of Realtors revealed that the two major reasons Americans prefer owning their own home instead of renting are:
They want the opportunity to build equity.
They want a stable and safe environment.
John Taylor, CEO of the National Community Reinvestment Coalition, explains that those who lack the opportunity to become homeowners have a weakened ability to reinvest their wealth:
traditionally have been huge supporters of homeownership. We see it as a
way to provide stability for households but also as an asset-building
strategy. If you continue to be a renter, locked out of the
homeownership arena, increasingly those things are further and further
out of reach. They’re joined at the hip. They perpetuate each other.”
Does owning your home really create a more stable environment for your family?
A survey of property managers conducted by rent.com disclosed two reasons tenants should feel less stable with their housing situation:
68% of property managers predict that rental rates will continue to rise in the next year by an average of 8%.
53% of property managers said that they were more likely to bring in a new tenant at a higher rate than negotiate and renew a lease with a current tenant they already know.
We can see from these survey results that renting will provide anything but a stable environment in the near future.
Homeowners enjoy a more stable environment and at the same time are given the opportunity to build their family’s net worth.