When people talk about homeownership and the American Dream, much of the conversation revolves around the financial benefits of owning a home.

However, two recent studies show that the non-financial benefits might be even more valuable.

In a recent surveyBank of America asked homeowners: “Does owning a home make you happier than renting?” 93 percent of the respondents answered yes, while only 7 percent said no. The survey also revealed:

  • More than 80 percent said they wouldn’t go back to renting
  • 88 percent agreed that buying a home is the “best decision they have ever made
  • 79 percent believed owning a home has changed them for the better

Those surveyed talked about the “emotional equity” that is built through homeownership. The study says more than half of current homeowners define a home as a place to make memories, compared to 42 percent who view a home as a financial investment. Besides building wealth, the survey also showed that homeownership enhances quality of life:

  • 67 percent of current homeowners believed their relationships with family and loved ones have changed for the better since they bought a home
  • 78 percent are satisfied with the quality of their social life
  • 82 percent of homeowners said they were satisfied with the amount of time they spend on their hobbies and passions since purchasing a home
  • 75 percent of homeowners pursued new hobbies after buying a home

Homeowners seem to be very happy.

Renters Tell a Different Story…

According to the latest Zillow Housing Aspirations Report, 45 percent of renters regret renting rather than buying — more than five times the share of homeowners (8 percent) who regret buying instead of renting.

Here are the four major reasons people regret renting, according to the report:

  • 52 percent regret not being able to build equity
  • 52 percent regret not being able to customize or improve their rentals
  • 50 percent regret that the rent is so high
  • 49 percent regret that they lack private outdoor space

These two studies prove that renting is just not the same as owning.

Bottom Line

There are both financial and non-financial benefits to homeownership. As good as the “financial equity” is, it doesn’t compare to the “emotional equity” gained through owning your own home.

The information contained, and the opinions expressed in articles, videos, or infographics posted or shared by the Staten Island Board of Realtors® (SIBOR) are not intended to be construed as investment advice. SIBOR does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. SIBOR will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.