Are You Falling Into the Trap of Societal Expectations About Homeownership?
Under the weight of societal pressure and the American Dream, this essay explores the multifaceted issues today’s homebuyers face.navigating societal expectations and the ever-changing housing trends, we delve into the complexities of buying a home in the current economic climate. Through personal anecdotes, expert analysis, and practical advice, we uncover the realities faced by first-time buyers, seasoned investors, and everyone in between.
Three main takeaways:
The Shifting Definition of the American Dream
Children are Evil Destructive
The Social Stigma of Renting
Is homeownership still the cornerstone of the American Dream, or is it evolving into something new? Join us as we dissect the trials and triumphs of those navigating the tumultuous real estate environment—what insights will you gain?
Where the dream of homeownership seems increasingly out of reach for many, a recent Buzzfeed article captured 25 critical issues that today’s homebuyers are grappling with, from dealing with accidental damages and maintenance costs, to navigating the pressures of societal expectations and shifting housing trends.
This blog series aims to take a deep dive into each of these 25 Buzzfeed issues. We’ll explore every facet of the current market conditions. Each post in the series will tackle one specific concern, providing insights, expert analysis, and practical advice to help you navigate the complexities of buying a home in today’s economic environment.
Whether you are a first-time buyer, a seasoned investor, or simply curious about the state of real estate, this series will provide perspective to help you make informed decisions.
With some of these widespread concerns laid out, let’s dive directly into one of the Buzzfeeed voices:
“My kids are so rough on things just by being kids. I’d be pissed if the accidental hole they made in the wall was really ‘my wall.’ Now, I can just patch it the best I can and move on. I don’t stress as much with normal wear and tear because it’s not my investment.” —Anonymous
Anonymous, I don’t know if this is a real estate or a parenting blog today. I guess, take your pick. I do think it’s worthwhile to check out the Buzzfeed responses though:
Real-Life Stories: The Impact of Children on Home Maintenance
My oldest daughter is 23, and if she happens to read this post, probably, she’ll get pretty upset with me, or at least a good amount of embarrassment, but let’s keep writing because that’s the kind of father I am.
My daughter is an artist, well, at 18 months, she at least thought she was an artist, and our very white walls were covered in crayon and permanent marker. Turns out, permanent marker is not that permanent if you use a bit of Colgate toothpaste. But, no matter how much I washed the walls, no matter I literally padlocked the crayons, markers, and pens—somehow, the artwork returned. My landlord was concerned, to say the least.
You’d think this childhood behavior would subside. Did I say she is 23? She’s 23. If you wander into my attic, along the windowsill, you’ll see a chain of graffiti flowers.
As I’m writing the draft of this blog at my favorite coffee shop, a young mother dragged her three toddlers in with her. One running around the shop acting like he’s an airplane. Another waiving at everyone and saying hello. The third just fell flat face down onto the floor. His sippy cup slipped from his hand and skittered across the shop. Also. He’s screaming his head off. They are all very loud. I think I have a headache. I can’t tell if I’m annoyed or amused. I’ve definitely forgotten what it’s truly like to have little kids around my ankles.
A Childhood Confession
Once, and hope my mother’s not reading because I’ve never confessed, I think I was fourteen, fifteen years old, we’d moved into a new construction home, and I repeatedly threw a bouncy ball against my bedroom wall, until I broke the storm window. My solution was to remove the storm pane, place it in the crawl space underneath the insulation, pretend like I accidentally discovered the broken storm pane. Then, I blamed the builders.
And you know, the mother with her toddlers, the ‘asshole’ she is, did not drive up the coffee prices. My parents did not loose value on their house because of the broken window. Probably, Anonymous, you should have maybe called your landlord and told them about the hole.
Renting vs. Homeownership: A Broader Perspective
Look, some people rent because homeownership is beyond their budget, while others embrace renting for the sheer freedom and lifestyle it offers. The myth is that the United States is a nation of homeowners because owning a home is a part of the American Dream.
Trends in Renting
However, as you can see from the graph, the number of renters has been on a steady rise. In 2019 we sat at 43.28% of the population renting.
Renters only continue to grow, reflecting a broader shift in housing preferences and economic realities. According to the Harvard JCHS America’s Rental Housing 2022 Report, the number of renter households grew by 870,000 from the first quarter of 2020 to the third quarter of 2021, reaching a total of 44 million. This surge drives down vacancy rates and pushes up rents. For example, here in New Hampshire, rental vacancy rates (which you can read more about here) are below the 1% mark.
Ownership of rental properties notably shifted from individuals to business entities. By 2018, 26% of rental properties were owned by non-individual investors, indicating a rise in institutional investment.
The good news here is that according to The Josiah Bartlett Center for Public Policy, nationwide, rents have fallen due to increased apartment supply and higher vacancy rates.
Unless, of course, you live in New Hampshire. Rents rose at double last year’s rate. The New Hampshire Housing Finance Authority reports an 11.4% increase in average rent, attributed to local zoning regulations that restrict construction, causing a housing shortage amid strong demand. This has led to higher heating and electricity costs for renters. New Hampshire needs significant new housing construction to stabilize rent prices, but local regulations pose a major obstacle.
The Changing Definition of the American Dream
For almost half the country, the American Dream seems to have crumbled, or at least shifting in definition.
James Truslow Adams popularized the concept of the American Dream in his 1931 book Epic of America. Adams described the concept as “that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.” This vision was built on the idea that prosperity and success were accessible to all, provided they worked hard and utilized their talents.
The traditional American Dream centers around five core concepts:
- Homeownership
- Economic Opportunity and Upward Mobility
- Freedom and Individual Rights
- Education and Self-Improvement
- Family and Community
Evolution of the American Dream
Each succeeding generation has taken a hold of the American Dream and shaped the concept to fit their own needs. But then, somehow, we got stuck in the 1950s. A washer and dryer in every house. A car in the driveway. Sock hops and soda shops, rock and roll. White picket fences, backyard barbecues. Tupperware. Jello and instant cake mixes. TVs and wholesome good old-fashioned capitalistic-consumerism Leave it to Beaver behavior.
Homeownership in the 21st Century
Fast forward to the 21st century, and there still seems to be a need—or maybe better described as a yearning—to buy a house. Homeownership can be, of course, a wise long-term investment. Some of the benefits of homeownership include:
1. Equity Building: Each mortgage payment increases your ownership stake in the property.
2. Appreciation: Property values generally increase over time, boosting your investment.
3. Tax Benefits: Mortgage interest and property taxes are often tax-deductible.
4. Long-term Investment: Property ownership can be a hedge against inflation.
5. Generational Wealth: Ability to pass property to heirs.
The Pressure and Pitfalls of Homeownership
But the societal pressure to buy property sometimes leads people toward unwise choices. And, renting is frequently viewed as a sign of lower social status, adding to the urgency and stress associated with becoming a homeowner.
Choosing Renting Over Buying
“I got a job. I got married. So the next step was to buy a house. That’s what you’re supposed to do,” says Bernadette Joy, a money coach and a founder of Crush Your Money Goals, in an interview with Dashia Milden for CNET Money.
“Joy has bought (and sold) three homes over the years. After trying homeownership and real estate investing, she and her husband recently decided to unload all their properties. Looking back, she realizes they made the mistake of buying a home in 2013 out of obligation, not because they actually wanted one,” writes Milden.
“I’m financially independent. I have $1.6 million dollars of net worth and I rent. I can afford to pay for a home in cash and I’m still not buying,” says Joy.
There are reasons to rent.
1. Flexibility to Move: Renting allows you to relocate with ease, perfect for those with jobs that require frequent moves or those who enjoy changing their environment.
2. Lower Upfront Costs: Renting typically requires a security deposit and first month’s rent, which is significantly less than a down payment on a home.
3. No Maintenance Costs: Home repairs and maintenance are usually the landlord’s responsibility, saving renters time and money.
4. No Homeowners Insurance: While renters insurance is recommended, it’s generally much cheaper than homeowners insurance.
5. Access to Amenities: Many rental properties come with access to amenities like pools, gyms, and common areas without additional cost.
A New American Dream
The American Dream seems to be shifting—moving from material ownership toward social connection and personal fulfillment (The 74 Million).
As much as other Realtors in my sphere of influence poo-poo renting (because, honestly, we only make money when someone buys or sells a whole house), renting can offer peace of mind, financial flexibility, and the freedom to adapt to life’s changing circumstances without the long-term commitment of homeownership.
The real estate agent who says you must buy a house to feel fulfilled and happy is wrong. And, Anonymous, the Buzzfeed people yelling at you, for your kid punching a hole in the wall, are trolls.
