Comment by caditinpiscinam
3 days ago
That "less commitment" argument assumes that renters are content to be paying higher-than-mortgage costs for a property they'll never own. If they are, then it's true that the rental system is benefiting them. If they'd rather own their homes and be paying a mortgage, then the rental system is a hindrance.
My intuition is that the majority of renters would rather be owners paying mortgages. This is less true of certain demographics (young people, students) and more true of others (older people, families).
I also wouldn't characterize being a renter as low-commitment. Say you're renting a place for 1.2k a month. When you sign a year lease, you're committing to pay 1.2k x 12 in rent, plus (at least) a month of security deposit, for a total of 15.6k. That may not be a down payment, but it's still a huge commitment, especially given how hard it is to assess potential problems with a living space before you've actually lived there.
> but it's still a huge commitment, especially given how hard it is to assess potential problems with a living space before you've actually lived there.
Now imagine trying to asses the potential problems with a living space before committing the next 30 years of those payments, plus locking yourself into that single living space and taking on the single and sole responsibility for repairing or addressing all of those problems yourself.
Look, I really like owning my own home, but when I signed a rental agreement, for the duration of the agreement that was the most money I would ever spend on my housing. And I never once worried about replacing a roof, or replacing an HVAC unit, or replacing a water main. I've owned my own home now for over a decade and my monthly housing expenditure is nearly 2x what it was when I started between tax increases, insurance increases and loans to pay for the various major repairs, and that's with a fixed rate primary mortgage. And that's my cost increases AFTER the insurance payouts. The townhome I first rented when I moved to the area currently rents for about $100 LESS than I pay each month. Granted when I bought the place, it was renting for about $200 more per month than I was paying but that basically means renting vs buying was a wash as far as costs go. Yes, to a degree I got unlucky, but that's also the point, I couldn't know if I was going to be unlucky or not before agreeing to the mortgage. As a renter I could get reviews and recommendations or warnings from prior tenants and at least have a chance of knowing what I was getting into.