People living in some countries prefer to be home-owners than tenants because owning a home helps them build an asset for their future and is often considered a source of pride in many countries. Despite the fact that rising home ownership can put pressure on the rental market, I strongly believe that it is a great way for people to secure their future in countries where the goverment does guarantee housing for its citizens in their old age.
Many people worldwide would rather spend their money on a mortgage instead of paying to a landlord to live in a house. One of the reasons is that they may choose to look at a mortgage as an investment for the future, where they build an asset for themselves. Furthermore, over time, rising value of an owned property can yield equity that people can use towards further investment. Consequently, owning a home can lead to a secure financial future. Besides this, many feel a sense of identity and pride associated with home ownership, which is a significant milestone for many in their lives.
On the one hand, this can spell trouble for those who cannot afford to purchase a property. If many people live in owned accommodation, not many houses will be left for the lower income groups. As a result, a shortage of houses for rent, would drive up rental prices, further worsening the situation for renters. On the other hand, in countries where no social security is provided by the government, the only avenue for people to secure their future financially is through owning a home. Despite the drawback mentioned above, individuals and households often choose to purchase houses keeping in view self-interest, especially when they do not get government assistance for housing.
In conclusion, the preference to own a home over renting is primarily because it helps people to build wealth. Although it has some socio-economic disadvantages, I firmly believe that owning a home is crucial in many countries where government support for the retiring members of community is close to non-existent, especially in terms of housing. If people did not secure their own home when they can afford it, they may eventually have no place to live in their declining years.