|Why Do Renters Rent Instead of Buy?
Despite what many people think, not all renters are looking to become homeowners. These days, people find renting a lot easier than owning a home, which is why they are complacent with simply renting their space even though society thinks homeownership is everyone’s end goal. In fact, 13% of renters have no interest in ever becoming a homeowner, according to a survey from Upad. And that same survey has found that 40% of renters have been doing so for more than four years and 21% of tenants have actually owned houses before. So why do people rent instead of buy? Here are a few potential reasons:
Not being able to afford a mortgage
A top reason why people rent instead of buy is that they can’t afford the mortgage on a house even if they wanted to. Renting is most of the time a lot cheaper than owning, which is why so many people do it! According to the Upad survey, 24% responded that they couldn’t afford the mortgage if they bought a home.
Life is a roller coaster and you can never predict what will happen. About 13% of renters are renting because of some personal circumstance like a relationship breakup or a new job in a new city.
Renting to know the area
There are a few renters out there looking to scope out the area of a new town or city before they commit to buying a home. This is smart because buying a home is a huge commitment and knowing the area before buying can save you a lot of money if you don’t end up liking the neighborhood.
Rent because of location
About 26% of people rent because it’s close to their work or school and this only adds more convenience to their life because trying to commute can really wreck havoc on your health and life. Renting near work or school just makes sense, which is why many people look for places nearby.