About one-quarter of adults rent their home. Find out the top 3 reasons why.

Answer:

The top reasons people rent:

1. Can’t afford down payment
2. More convenient or flexible
3. Can’t afford mortgage monthly payment

Questions:

•  Summarize: what is the main broad reason that people decide to rent?
• What factors might make someone MORE likely to decide to rent, rather than buy?
• At what age do you think you would feel ready to buy a home, if at all? Why?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Federal Reserve): 

"Renters cited multiple reasons for renting their homes. Similar to reasons reported in 2022, financial constraints led many adults to rent their home instead of owning in 2023. The most cited reason for renting was an inability to afford a down payment—in 2023, nearly two-thirds of renters cited this as a reason. Four in 10 renters indicated that they rent because they cannot qualify for a home mortgage, and 48 percent said they rent because they cannot afford the monthly mortgage payment.

Although many renters noted financial constraints, these were not the only reasons for renting. More than one-third of renters preferred to rent than to own. The majority of renters (57 percent) said that renting is more convenient, and 44 percent rent their homes because they perceive owning as a larger financial risk. Forty-two percent of renters found it cheaper to rent than own."

About the Author

Kathryn Dawson

Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.