thegardenisland.com
Friday, March 8, 2024 • B3
THE GARDEN ISLAND
Homeowners are happy Franklin Schneider WEALTH OF GEEKS Nearly 7 out of 10 renters believe owning a home would make them happier — and recent research from real estate company Home Bay proves they’re right. Homeowners are happier with their living situation than renters by almost every measure. They’re less stressed, more financially secure, and enjoy more privacy and stability than renters. Homeownership is not without its disadvantages, though. About 52 percent of homeowners admit owning a home is more expensive than expected, and 43 percent say it is more challenging. The relative ease of renting may be why 28 percent of renters say they never wish to own a home.
them happier, and 56 percent don’t regret their decision to remain renters. Homeownership may be undesirable to some as renting comes with significant benefits. Leaseholders and homeowners said not having to worry about maintenance and repair costs is the top benefit of renting. Most homeowners find routine maintenance burdensome, with 47 percent saying they miss not having to take care of home repairs and 56 percent expressing a desire to spend less time on upkeep. Lessees may not accumulate the financial benefits of owning a DAVID ZALUBOWSKI / ASSOCIATED PRESS home, but they also don’t have to bear the significant responsibiliA “For Sale” sign stands outside a condominium on the market in ties of homeownership. Denver on Wednesday, Feb. 21, 2024. Costs block renters from Additionally, 60 percent of and 73 percent of renters agreed. homeownership Americans said not having to Homeowners also experience
more financial stability, with 82 percent saying homeownership Ninety percent of former rent- gives them economic security and 49 percent saying appreciaters said they’re happier since moving into a home, and 80 pering property values helps them build wealth. On the other hand, cent said buying a house was renters get no real benefit from their best decision. Measures of overall happiness paying rent aside from having a roof over their heads for another confirm that homeowners are month. more satisfied than renters. Unsurprisingly, two-thirds of Homeowners rate their overall happiness as 7.5 out of 10 on av- tenants said they faced pecunierage, compared to just 6.2 for ary pressures, compared to 44 leaseholders. percent of homeowners. Renters are also 81 percent more likely to Privacy, stability are top have worried about money frehomeownership advantages quently or constantly in the preHomeowners and renters agree vious seven days. that the top benefits of ownerBeyond the economic benefits of homeownership, both groups ship are privacy and stability. cited privacy as a plus. NineWith annual rent prices and evictions rising across the United ty-one percent of homeowners States, 90 percent of homeownalso said the ability to modify their space is a bonus — a luxury ers believe their lives are more not afforded to most renters. stable than the lives of lessees, Homeowners are happier
30-year mortgage rate eases for the first time in five weeks Alex Veiga AP BUSINESS WRITER LOS ANGELES — The average long-term U.S. mortgage rate edged lower for the first time in five weeks, a welcome shift for home shoppers this spring homebuying season. The average rate on a 30-year mortgage slipped to 6.88 percent from 6.94 percent last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.73 percent. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, pulling the average rate down to 6.22 percent from 6.26 percent last week. A year ago it averaged 5.95 percent, Freddie Mac said. “Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” said Sam Khater, Freddie Mac’s chief economist. Mortgage rates ticked higher for most of February as stronger-than-expected reports on inflation and the economy fueled speculation among bond investors that the Federal Reserve would have to hold off on cutting interest rates longer than expected. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates can influence rates on home loans. Federal Reserve Chair Jerome Powell said Wednesday rate cuts are likely to begin this year, but the central bank first needs to see more evidence that inflation is cooling. The Fed’s main interest rate is at its highest level since 2001. Despite the choppy trajectory in mortgage rates this year, the average rate on a 30-year home loan is still down from the 23year high of 7.79 percent it reached in late October. The decline in rates since their peak last fall has helped lower monthly mortgage payments.
But, 1 in 5 wish they were still renting
deal with landlords is a perk of homeownership, while 53 percent said not sharing walls with neighbors is an advantage. Some renters are content
In general, leaseholders are more stressed than homeowners, rating their average stress level as 6.2 out of 10, while homeowners rate their stress as 5.1 out of 10. Although 70 percent of tenants polled confirm that renting is stressful, 49 percent think ownership would be more difficult. There’s a small but significant percentage of renters who are resolutely anti-homeownership. Of respondents, 28 percent stated they have no desire to buy a home, with 3 percent of those polled saying property acquisition provides no added benefit. Nearly a third of lessees don’t think owning a space would make
Although a small slice of renters do not want to buy, most haven’t purchased a house because they don’t have enough money. 46 percent of renters said low incomes hinder home acquisition, and 42 percent said homeownership is too expensive. 39 percent said they couldn’t afford to save a down payment, 31 percent said interest rates are too high, and 29 percent said their credit score is too low. It’s unsurprising that leaseholders have a gloomy outlook on the housing market, with 62 percent saying they feel bad for anyone trying to buy a home in 2024. They are also less likely to believe they will ever own homes. About 54 percent of respondents believe homeownership is out of reach for the average American, while 60 percent of
renters believe homeownership is out of reach for them. Worse yet, renting could be a direct obstacle blocking homeownership. 72 percent of renters said the high cost of rent prevents them from saving for a home. For some, leasing a space is a matter of convenience, but for many, it’s a trap. The homebuying process remains opaque For all the thought and emotion Americans put into buying a home, they don’t know much about the homebuying process. Nearly two-thirds of Americans believe a 20 percent down payment is an ironclad requirement, even though there are many lowor zero-down payment mortgage options on the market. Moreover, barely 1 in 10 Americans know that real estate commission is about 6 percent of the final sale price. The last point is especially relevant as a series of multibillion-dollar federal lawsuits reshape the cost of buying and selling a home. Most experts agree that buyers may soon have to pay their agent commission, and 52 percent of both renters and homeowners are concerned about the deterring effect of such a cost. Additionally, 27 percent of each group said paying a buyer’s commission would significantly influence their buying decision. Higher costs and a dearth of information could lead to a market slowdown soon as consumers struggle to apprehend and afford a shifting commission landscape that they didn’t understand in the first place.