Are Homeowners Happier Than Renters?

Owning a home is the ultimate dream for a lot of Americans. Those in the rental market may find themselves daydreaming of eventual homeownership as they wonder, "Is homeownership the key to happiness?" Take a look at an exploration of the lifestyle differences between those who own their own home and those who rent.

The Dream Remains Alive

According to a 2020 survey conducted by Bank of America, nearly 90% of prospective buyers are excited and motivated to buy their first home, with 80% saying homeownership is a top priority. On top of that, a 2019 Bank of America survey asked homeowners if owning their home made them happier than renting did, and a whopping 93% answered yes. Looking at this data alone, it seems that both renters and homeowners agree: homeowners are happier.

...But There Are Benefits To Renting

Although renters and homeowners alike seem to think buying a home is where it's at, prospective home buyers should consider the benefits of staying in the rental market a bit longer. Renters are able to move on a whim without concern for selling the home or losing money. They don't have to handle the cost or pressures associated with home maintenance and repairs. Best of all, they don't have to worry about the financial commitment that comes with a mortgage.

So What Makes Homeownership the Better Option?

Thinking about the pros and cons of owning a home, it seems that financial stress, home maintenance, and long-term commitment fill out the cons category rather quickly. Even so, the vast majority of homeowners report feeling happier and like a better person after purchasing their homes.

The financial security that comes with homeownership is likely to be one of the most common reasons for this feeling. A home is a great investment that helps buyers increase their net worth while building up equity and credit, eventually affording them opportunities to upgrade or use that equity for travel and other big expenses. If a homeowner chooses to remain in the same house for the long run, their mortgage will eventually be paid off, enabling them to enjoy a dramatic reduction in living expenses.

Owning a home also comes with some other big benefits. Most notably, those who own their own house can paint, renovate and make changes as they desire, giving them the opportunity to make their living space an extension of their unique personality.

While there are clear benefits to both renting and owning a home, renting doesn't compare to homeownership. Overall, homeowners are happier and more financially secure.