Are Renters or Homeowners Happier?
Are homeowners or home renters happier? Hmm. On the one hand, the satisfaction of ownership is quite fulfilling. But on the other hand, the maintenance, and repairs, and therefore expenses, never seem to end.
According to an October 2019 study by Bank of America, homeowners are happier, and renters regret not buying.
One question on the survey was: “Does owning a home make you happier than renting did?” Of the respondents, 93% answered “yes.” Another question was: “Could you go back to renting after owning?” For this question, 83% of the respondents answered “no.”
Interestingly, the survey also asked, “Has becoming a homeowner made you a better person?” The response to this question was 79% in the affirmative. Part of the reason for this is that when the questioners probed a bit, respondents said owning prompted new interests and hobbies, such as landscaping, cooking, interior design, and grilling. It seems when you own a home, you are more inclined to become invested in that home. It seems to inspire effort and pride of ownership. Owners also reported a greater interest in entertaining than renters.
Additionally, owners cited an improved quality in their social life, and better financial well-being.
Zillow conducted a similar survey but focused on renters. Their survey found that renters have significantly more regrets compared to homeowners. This survey found that 45% of renters regret that they chose not to buy, but rent instead, compared to just 8% of homeowners who regret not renting.
Some of the top reasons renters offered for their regret was not building equity, being disinclined to personalize their home, or improving it (why spend significant money on something you don’t own).
Further support for this view comes from a new study by Home Bay (3/24), an online publication owned by Clever Real Estate that connects readers with expert real estate advice also found that owners are indeed happier than renters.
Nearly 70% of renters say owning a home would make them happier. But 60% of renters report they simply can’t afford to purchase.
Finally, 90% of owners say they are happier overall after buying a home and another 80% say buying a home was the best decision they ever made.
This survey finds that the most common answer concerning the benefit of buying a home is privacy (14%), while renters pointed to stability (16%). According to the Home Bay study, homeowners are more satisfied with all aspects of life, including mental health.
The survey found that homeowners, on average, rate their overall happiness at 7.5 out of 10, while renters rate their happiness at 6.2.
Moreover, renters report higher stress levels, compared to homeowners.
The main downside that homeowners reported was that they found that owning a home is more expensive than they thought (repairs, maintenance, renovations, etc.).
Respondents of those who rented reported that the most major advantage (and for some people this is important) is there are less headaches involved in terms of repairs and expenses. The landlord is usually responsible for the costs of upkeep, repairs, and labor.
But for those who can afford it, home ownership offers far more benefits such as personal fulfillment and the building of equity.