Despite recent data from Freddie Mac showing that more than 80% of renters view renting as more affordable than buying a home, new data from Bank of America shows that the vast majority of renters who made the plunge into homeownership have no regrets about their decision.
In fact, the new report from Bank of America shows that 93% of people who bought a home are happier than they were when they were renting. The study, which is based on a national sample of more than 2,500 people, asked several questions, including “Does owning a home make you happier than renting?”
To that question, 93% of the respondents answered yes, while only 7% said no.
Beyond that, more than 80% of homeowners said they wouldn’t go back to renting.
According to the study, 88% of homeowners agree that buying a home is the “best decision they have ever made,” while 79% believe that owning a home has changed them for the better.
As for what contributes to homeowners’ satisfaction with their decision, a large percentage cited the “emotional equity” that’s built up when you buy a home as opposed to the financial benefits that are so often touted as tenets of the “American Dream” of homeownership.
According to the study, more than half of current homeowners define a home as a place to make memories, while 42% view a home as a financial investment.
Another emotional benefit is the relationship with family that is built by owning a home, according to the study.
The study showed that two-thirds of current homeowners believe their relationships with family and loved ones have changed for the better since they bought a home, while 78% are satisfied with the quality of their social life, which is much higher than the amount prospective homebuyers who say they’re satisfied with their quality of life (58%).
Another benefit of homeownership is that it allows buyers to both enjoy their hobbies and take up new ones.
According to the study, 82% of homeowners said they were satisfied with the amount of time they spend on their hobbies and passions since purchasing a home, while three out of four homeowners pursued new hobbies after buying a home.
So, beyond building up wealth and equity as a homebuyer, you can add quality of life and happiness up as benefits of homeownership, too.
(Note: Concentrix Analytics conducted an online survey on behalf of Bank of America between January 30 and February 21, 2019. Concentrix surveyed a national sample of 1,919 adults age 18+ who currently own a home or plan to in the future. In addition, the national sample was supplemented by another 782 respondents to reach the following groups: Generation Z, single females, single males, renters and homeowners that have paid off their mortgage.)