Comparison Of Owning Versus Renting A House

Young adults often struggle between the idea of owning and renting a home. This essay will discuss some of the differences between owning and renting a home for young adults in relation to upfront costs, time spent at one location, and accommodating your family’s spatial needs. The first thing to consider when looking for a new place to live is what can you afford and how much are you willing to spend. There are substantial financial differences between owning and renting a home. John P. Shelton (2001) states that “home ownership requires a down payment investment and a credit rating that some families cannot provide” (p. 13).

Additional costs such as federal income tax, maintenance, mortgage payments, property insurance, property tax, and utilities (Cox & Followhill, 2018, p. 2) can become costly when everything is added together. Whereas with renting, the associated costs are mainly hazard insurance, rent expense and utilities (Cox & Followhill, 2018, p. 2). With this in mind young adults are also often just starting to figure out what they would like to do with their lives as well as where they would like to live. The uncertainty of not knowing where you will be and for how long can be frustrating. As discussed by Arthur Cox and Richard Followhill (2018) “Clients who are unsure about the amount of time they will be able to live in a certain location might be advised to wait until this uncertainty is resolved” (p. 2). When buying a home, individuals should have a clear outlook of their family’s future for there to be value in buying that home. However, with renting individuals can sign a lease for generally a year or two at a time or even month to month, allowing for more flexibility in the location and price range and this more closely coincides with the needs of many young adults. Once a family is settled, it is understandable to want to own a home, but in most cases today families are smaller than they used to be. Shelton (2001) confers that “most families are composed of only one or two people who do not need the living space” (p. 13).

With owning a home, the space will remain the same unless the home is renovated. This can lead to unused space, higher maintenance, and the cost of the space can be high for the number of people living there. On the other hand, with renting there are more suitable spaces to accommodate a family’s spatial needs. Also, there will be less maintenance, and it will be less costly. In conclusion, owning and renting a home have major differences such as costs, time spent at one location, and spatial needs. Every family’s situation is different, and each situation calls for a different solution. Being aware of these major concerns can help determine the best housing option for a family’s needs.