Why we rent rather than buy
You may have noticed that there’s a trend among young apartment renters these days – rather than thinking of renting as a temporary solution to a lifelong problem – they’re thinking of it as how they’ll live for the course of their lives.
You may have noticed that even in today’s real estate market with interest rates at all time lows and renting uber competitive in some markets, that people are still opting to rent over buying a place to live. This generation has been dubbed the Rentennials. We recently talked to a number of apartment renters who gave us their reasons for steering clear of the home buying process, which vary greatly from person to person.
What are your reasons for not wanting to buy a home? Here’s the feedback from the folks we talked to:
“I get the sense that the generation as a whole is gravitating toward renting, because it frees up so much time and money to follow your passions — travel, work, art, music, writing, all of those things are slightly easier when you are not tied in to a mortgage and home maintenance.”
“Why sink all that money into a home you probably will lose money on, when you can rent and put your extra money into the market and hope for the best.”
“The primary reason people buy houses is to settle down and have a family. People are marrying later and getting divorced faster. We are also more mobile in terms of our jobs. Because careers aren’t for life for our generation, housing stability is sacrificed so we can stay mobile.”
“People do not like the responsibility and unknown costs of owning. Renting is simply easier and more flexible. Jobs move these days and renting gives one the flexibility to do so.”
“Lack of stability in the job market. Even though I have a good job, I’m afraid I could lose it if the economy goes south again, and then what happens to my mortgage payment?”
“Mobility is increasingly important for young professionals fortunate enough to have a well-paying job, which makes being tied to a home less attractive. Home ownership will still appeal to some, though I predict those who do buy homes will do so later in life.”
Are you a renter? What are your reasons for renting and not buying?