Generation Rent: The appeal of homeownership versus the flexibility of renting

A 2012 report by the Iowa Finance Authority found that young adults between the ages of 25 and 34 formed more new households in Iowa than any other age group in the decade. But they aren’t buying new houses – the majority of them are renting.

“This is a generation that’s moving into apartments,” Culkin said. “This is a phenomenon that is going to continue to increase.”

Every once in a while I think about buying a house. Just a little. Friends and cousins have bought homes so I feel a nudge of self-imposed pressure to follow suit. My mom will often mention a home for sale here or there. On Sundays I sometimes glance through the real estate listings for fun, just to see if anything interests me. Usually nothing catches my eye, but now and then I see something that I think would be worthwhile. Then I look at the price. Then I move on to the comics and completely forget about homeownership for the rest of the week.

I have been renting since I was nineteen. Despite the fact I sometimes feel it may be time to take “the next step,” time to “man up” and settle into a place I own, I see myself renting for the foreseeable future much like many others in my generation. And you know what? I really do not see any problem with it. Except, of course, for the fact it is supposedly cheaper to make a monthly mortgage payment (especially with interest rates so low) than pay rent.

In certain ways, homeownership is appealing. It’s my house, my own little homestead and sanctuary in the world. No worrying about leases, landlords, and increasing rent. I can improve and customize it to my liking (so long as it meets city code), and even have pets. And it offers tax breaks. (This country bends itself over backward catering to married homeowners with kids but, as best as I can tell, turns a blind eye to single renters.)

However, buying and owning a home can be expensive and burdensome. Maintenance becomes a personal responsibility. It is an understandable trade-off that can become costly, especially in homes that have not been well-maintained or poorly built. A home also becomes an anchor. Though it would solidify my commitment to a community, it makes moving and life adaptations much more difficult. I do not foresee myself making any cross-country moves anytime soon, but I will not rule it out and feel the need to leave that door open just a crack. (I think a career change will be necessary in the next year or so, but that is a completely different subject and post.)

I do not mind renting, but I do not want to keep dumping wheelbarrows full of money into a landlord’s pocket. Yes, I think I would get more bang for my buck by investing in something I own — theoretically, at least. No more plain, white walls; I could paint the interior and exterior whatever color I wanted without having to worry about painting over it when I move. (Not that having white walls bothers me. But if I were to buy a house, the first thing I would do is paint it. Unless the paint job was in good shape and I liked the color, of course.) Owning a home, I suppose, would save me money in the long run. However, buying means a mortgage. I am not one who seeks debt and abhors the thought of borrowing money. Even a down payment would require a loan.

I am also not a risk taker. As I said, a home becomes an anchor — one that can become very heavy and cumbersome, even immoveable, if all the wrong things happen. Right now I have a pretty secure job, but what about in five, ten, twenty years? (I will not be an editorial assistant forever.) I like Iowa City and would like to stay, but will that be possible career-wise at a certain point? I am not willing to commute by car, either. (Screw that!) Perhaps it is a defense mechanism I developed when I lived in California, but I do not want to be tied down too tightly in case I want or need to uproot. I like that freedom. Though a lease ties me down to a certain extent (especially in Iowa City, where everybody signs a one-year lease) I have the option to sublease if needed. I could contract a property management company to lease my house, but that could get messy.

Yet, despite all that reasoning, the romantic appeal of homeownership is still there. Perhaps it was culturally instilled since adult homeownership seemed ubiquitous when I was younger. Renting seemed to be stigmatized in certain ways. Those days, though, seem to be long gone — especially for a generation that is as burdened with debt as mine is. A mortgage on top of equally massive school loans, in a limited job market with little opportunity for career advancement, dims the prospects of homeownership for many.

I do not want to rule it out, though. It would be a huge step, a potential financial risk, but one I would be willing to consider — cautiously — if all the pieces fell into place. Until then, though, I will keep paying rent on the first of every month.