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Rent or buy? The challenge of access to housing
Rent or buy? The challenge of access to housing

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1 Buy or rent?

Attitudes to buying or renting vary a good deal across countries. A few households in six different countries from around the world were interviewed and asked about their reasons for deciding to buy or rent, and what the usual type of housing tenure is in their country. (‘Tenure’ means the way in which a property is occupied, for example as an owner or as a tenant who is renting.)

Activity 1 Buying or renting preferences for households around the world

Timing: Allow around 30 minutes

The interactive map (link below) presents people from around the world talking about their decisions to buy or rent a home and what seems to be the norm in their country. Select ‘View interactive version’ below the image to expand the map. Open it in a new tab or window so you can view it alongside this activity. You can select each of the red pins on the map to find out more about the households that were talked to. Select each tab below the map to watch a video where some of the households talk about each topic. As you watch, make some notes to help you answer the questions below.


View interactive version
Attitudes to buying and renting
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The image shows a map of the world with six countries highlighted: the US, Brazil, the UK, Germany, Sweden and India. Clicking on each country opens a panel describing two households in that country. The descriptions are as follows:

Peter, New York, US: Peter, 52, was born and raised in New York. He’s single and lives in a rent-stabilised apartment in the Lower East Side, Manhattan. He also takes care of his older uncle who shares the apartment with him. Peter used to work at the port, but is now working from time to time for a transportation company, following training to get his commercial driver’s license. He was married 15 years ago, but divorced after getting in trouble with the law. He has no children.

Jennifer and Joseph, New York, US: Joseph and Jennifer are both in their 30s. They live in East Village, Manhattan. Joseph was born in Connecticut and Jennifer comes from New Jersey. Joseph works as a Risk, Compliance, and Anti-Fraud professional at Deutsche Bank in the city, and Jennifer works in Business Management/Re-engineering at Citi Bank. They are not married and have been living together for almost 10 years. Jennifer has two daughters and Joseph has one son. They both studied business and finance at University and have spent much of their career in banking.

Sonya and Hector, Redhill, England: Sonya and Hector live near Redhill in Surrey and they have two young children. Hector works for a software company and Sonya works in the voluntary sector. Their family life is very important to them, and they’re always off on new adventures together.

Maureen, Southend-on-Sea, England: Maureen lives in Southend-on-Sea. She is in her seventies and retired (from a career in public health services). She is a widow, and has two grown-up children who have families of their own. She’s a keen gardener and is very active.

Heather and Lawrence, Luleå, Sweden: Heather and Lawrence are in their mid-40s and live in Luleå. They are married and have a 12-year-old son. Lawrence is a Business Developer/Senior Researcher at Swerea [a Swedish research group for industrial renewal and sustainable growth]. Heather is a Project Manager at the Career Centre of Luleå’s University of Technology. They are both from Canada, but have been living in Luleå for the past decade.

Yassra, Luleå, Sweden: Yassra is a single mother in her mid-40s, with a 13-year-old daughter from a previous marriage. She lives in Luleå and is currently unemployed, having previously worked as a waitress in a café. She is originally from Malaysia where she was a former reporter and political activist. She has lived in Sweden for the past 15 years.

Christian, Berlin, Germany: Christian is single and lives in Berlin. He has a disability. He does some photography and graphic design work.

Pia and Isabel, Berlin, Germany: Isabel and Pia are a couple in their 30s. They live together in Berlin, and they both work in advertising agencies.

Rosângela and Edson, São Paulo, Brazil: Edson and his wife Rosângela are in their early 60s and are both retired. They live by themselves, since their daughters are adults and have moved out. Edson and Rosângela used to work in state-owned banks. They live in Jundiaí, a medium-sized city in the state of São Paulo.

Aline, São Paulo, Brazil: Aline is 27. She broke up with her boyfriend (the father of her daughter, Noemi, who is 9). Aline and Noemi live with Aline’s parents and brother in a poor neighbourhood called São Mateus, in São Paulo city. Aline works as a cleaner at a big, multinational publishing company, and is undertaking a nursing course.

Rohith, Bangalore, India: Rohith lives in Bangalore. He is 35-years-old, married and has one child. Rohith is a businessman in the real estate sector, while his wife, Shilpa, is a HR Manager.

D L Mahesha, Bangalore, India: D L Mahesha is in his 40s. He lives in Bangalore with his wife and two children. He and his wife are both government employees.

Underneath the world map are two tabs: one saying ‘Why rent or buy?’; and the second ‘Typical tenure in each country’. Clicking on the label starts a video where the households talk about this topic.

Attitudes to buying and renting
Interactive feature not available in single page view (see it in standard view).

Based on the videos, answer these questions:

  1. What arguments are given for and against buying a home and for and against renting?
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Interactive feature not available in single page view (see it in standard view).

Discussion

These are the main arguments mentioned by the households:

  • Advantages of buying: Maureen in the UK mentions security; Edson and Rosangela in Brazil and Rohith in India suggest the ability to match their homes to their own needs and preferences; Isabel in Berlin mentions housing as an investment.
  • Disadvantages of buying: Aline in Brazil reminds us that not everyone who owns a property has enough money to choose the home they want. Some of the other disadvantages, such as reduced mobility, are the flip side of the advantages of renting.
  • Advantages of renting: It may be more affordable than buying (D. L. Mahesha in India); Pia in Germany likes the flexibility (‘you can quickly pack up and go’); and Jen in the USA points out that renting lets you try out an area before you buy. But some people are reluctant renters, like Yassra in Sweden, who does not have a job.
  • Disadvantages of renting: Money paid as rent is often seen as ‘dead money’, a view expressed by Hector and Sonia in the UK who say renting would be ‘putting money into nothing’. Other disadvantages are the flip side of the advantages of buying, such as being less secure.
  1. Thinking about the typical tenure, can you spot any differences between types of household or countries?
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Interactive feature not available in single page view (see it in standard view).

Discussion

Some of the differences mentioned are:

  • Young people are more likely to start out renting rather than buying (mentioned by Jen in the USA and Rohith in India).
  • Possibly people in cities are more likely to rent (mentioned by Pia in Germany), maybe because younger people are more likely to live in cities and only move to the countryside as they get older.
  • There may be some difference between countries – Yassra suggests renting apartments is common in Sweden, while the UK households talk more about homeownership. Rohith says owning is encouraged in India.
  • However, both the UK households highlight that younger people are more likely to be renting these days than in the past because buying has become too expensive.
  • However on average, income levels seems to be the prime drive of whether to rent or buy.