In the wake of the on-going sub-prime mortgage meltdown, many people are beginning to rethink the value of home ownership. Maybe homeowning isn’t for everyone. In an era of 72 hour notice plant closings, homeowners are chained to local labor markets, a recipe for widespread civic disaster in communities reliant on large American companies in decline. In fact, home owning’s largest benefits are artificially created via government. The mortgage income tax deduction, while popular, is unfair to renters. Some states, Massachusetts among them, allow income tax deductions for rent, but these deductions don’t begin to level the playing field.
Previous studies which seemed to confer a host of benefits on home owning may have confused correlation with causation, incorrectly controlling for a variety of variables including marital status and income level. (Home owners may not be happier because they own homes—they may be happier just because they’re richer. They’d be happy renters, too.)
And if that isn’t enough to make you reconsider renting versus owning, read this from a recent piece in the Boston Globe.
A recent study, which aimed to avoid the problems of previous research, suggests that homeownership confers no real benefits. The study examined self-respect, perceived notions of control, time spent with friends and family, volunteer activities, and enjoyment of the neighborhood, among other things. On all of these measures, after controlling for income, health status, and home value, the study found no significant advantage for homeowners. In fact, homeowners were on average 12 pounds heavier, and they spent less time with friends. They also reported more “pain” - the term used in the study’s survey - deriving from their homes than renters.
The downsides here all jibe with my own personal experience. So if you’re a renter who used to envy your home-owning aquaintances, remember to enjoy your friendships, admire your waistline, and bask in the Schadenfreude. You’ve earned it.
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