The concept of owning a home has been deeply woven into the fabric of American society for generations. While financial considerations often dominate discussions about homeownership, there's a profound psychological and emotional dimension that deserves equal attention. It's about creating a sanctuary, a reflection of oneself, and a space to nurture dreams. Today, let's explore what it truly means to own a home in contemporary America, beyond the conventional metrics of mortgage rates and property values, although we will mention a few financial benefits.
Without the constraints of a landlord's approval, homeowners have the freedom to modify their space according to their vision. This might mean painting walls in bold colors, renovating a kitchen to accommodate family gatherings, or transforming a backyard into an urban farming paradise.
Consider the story of Sarah, a sustainability consultant who purchased her first home in Portland. She converted her modest backyard into a permaculture garden, complete with rainwater harvesting systems and native plant species—modifications that would have been impossible in a rental property. Her home became not just a living space but a manifestation of her environmental values.
We have friends who have a cute little North Scottsdale home on just over an acre so they could have horses. One of the bonuses of our current home is the selection of fruit trees in our backyard. We have lemons, Mexican limes, grapefruit (we didn't even know about this one until a year or two later as someone must have cut it way down), tangelos, oranges, and blood oranges. My Grandson was recently visiting from IL and he took a couple bags of oranges home for his family.
Our First Place
I always lived in a single-family home when I was growing up in a couple of different Chicago suburbs. When I got married it was so exciting getting our first apartment. I was ready to move out of my family home and be on my own (well with my husband at the time). It was an old brick two-flat that hadn't been updated in decades. The owners were relatives of my Mom and grandparents, although I hadn't met them prior. They lived next door, but we rarely saw them.
There were three bedrooms, well, kind of. The bedroom off the kitchen should have been converted into a pantry. The main bedroom was the only one with an electrical outlet! I can't remember what the 3rd bedroom looked like, but it was small. The bathroom had a clawfoot tub and no shower.
But as a young married woman, it was fun cleaning it up and choosing new paint (we painted over some old wallpaper and it turned out great, but now that I look back I would have kept that charming wallpaper). It was also fun buying a brand new couch for our large living room. As a young couple, we put a ping-pong table in the big dining room. Those were the only large rooms.
The rest of the furniture was hand-me-downs, including a cool Formica kitchen table with red vinyl chairs from the 50s that was in my parent's basement. I wish I would have kept it. I also wish I had kept my '67 convertible white Mustang with a red interior, but that's another story.
One of the good parts was that there were original hardwood floors. But no amount of scrubbing would keep our socks from turning black walking on them. We ended up taking our grandparent's old carpeting when they were getting new. We just laid it down over the hardwood. I could catch the train to get to work at a stop down the street a couple of blocks. The elderly lady below us was going deaf and she didn't hear our loud parties. There was a White Castle steps away.
The rent was low but we realized how much our costs went up in the winter having to pay for oil heat. We used a couple of window air conditioners but the electric bill was nothing like that oil heating bill. There were few electrical outlets throughout our apartment. We had to make our coffee with an electric coffee pot set on the floor next to the refrigerator.
I grew up with dogs but I loved cats. I don't remember that there was anything on the lease that said "no pets", but I snuck in a couple of cats. The little bedroom off the kitchen was where we put the litter box, so that was the cats' bathroom.
It was fun when we first moved in, but the old place started getting old. I can't remember how long we lived there, but at some point, we started apartment shopping and ended up with a much newer place with 2 big bedrooms. We had multiple electrical outlets! There were built-in wall air conditioners. The bathroom was updated with a shower in the tub. It was three times the price of our first apartment, but the utilities (no expensive oil heat) made up for some of it.
Once again, we snuck our cats in as I believe this one definitely had a "no pets" clause in the lease. Unlike our prior place which was owned by an elderly couple, this was owned by an apartment complex company. I liked some color, but we weren't allowed to paint the white walls. It wasn't a deal breaker, but it made me realize that I didn't like renting with all the rules and I really started wanting to buy a house.
Our First House
This was after we sold it - we had an open front porch, the new owners enclosed it
We got married at the ages of 18 and 19 and bought our first home at 22/23. We now had an 18-month-old daughter. It was a little starter home with 3 bedrooms and one bathroom. It looked like a little red schoolhouse and had a cute open front porch with a railing. There was a fenced yard but no garage. There was a big shed at least.
When we first bought it I didn't want to sleep there because it was so dirty. We had to be out of our apartment the day we closed on the new house. We asked if we could store some of our stuff just prior to the closing but were refused. So we had a friend stand outside of the house with our first load on an open U-haul trailer while we closed. I don't remember how many times we drove back and forth from the apartment to the house with as much as we could fit on the trailer and our cars, but I know I was exhausted. Don't ask why we didn't rent a U-haul truck - probably because it was too much money.
Because of the layers of dirt on the floors and walls (I think it was vacant for a while), I kept my shoes by the bed. The next day we started the heavy cleaning. I had more fun decorating this little house than either of the prior apartments. This was our place! We didn't need permission to paint, choose our colors and style of flooring, and to have our cats. I felt so free and proud. Our mortgage payment was less than our prior rent and we now had tax write-offs by being homeowners.
The bedrooms were smaller than the apartment we moved out of but they were fine for what would eventually be us and 2 children living there (our 3rd son came later). We turned this dirty little place into a place where people would drop their jaws when they stepped inside. I had a knack for decorating and the house looked small from the outside but the large living and dining room combo was not expected by new visitors.
Our First Real Neighborhood
When we lived in our very first apartment we would speak with the elderly lady below us once in a while, but we had our own entry so we didn't run into her much. We never met or spoke to our neighbors on either side. We would acknowledge some of the neighbors in our second apartment but we never really made friends with anyone.
That changed when we moved to our first house. We would speak to our one neighbor when we were out in the yard all the time. He was a friendly older man who lived alone although his son would visit him a lot. We didn't talk much to the people on the other side but we'd say "hi" when we'd see each other.
As our daughter grew up she would bring some of her friends on the block over. Unfortunately, the one boy, who was only four years old, swore like a sailor and his parents lived at the end of the block and they were definite partiers. I'm glad we didn't live next to them. I felt sorry for the kid but tried to limit my daughter's time spent with him. She still learned the swear words.
We created a real friendship with new young neighbors a couple of houses down as their son started coming by and playing with my daughter. We would play cards and board games at each other's homes. I had just had my first son.
We created our little community which was something we never did living in our apartments. We loved that house, even though we knew at some point in time we'd be moving because it was a starter home and we would outgrow it.
And after about three years we painted over the red using a cream color, planted some flowers and bushes in front of the porch and on the front sides of the house (I already knew about curb appeal), and put it up for sale. It was as cute as could be. We tried it as FSBO's (For Sale by Owner). We got an offer from our first open house - at 50% of what we were asking!
We were going to give it a month but after that super low-ball offer we listed it with a friend that was a new Realtor® and she got it sold in 3 weeks. The best part is that we netted more than we would have taken as a FSBO. We already knew we loved homeownership, but this is what lit the fire of becoming a real estate agent myself. It was proven to me that helping home buyers and sellers was a much-needed service. The rest is history and we're on our ninth property (one of them was a four-flat that we lived in for a while and one was a second home in Scottsdale). We love our current home and were able to purchase it because of the equity we built up in each of the prior eight homes.
Homeownership often correlates with stronger community engagement. When people own homes, they tend to invest more time and energy in their neighborhoods, participate in local governance, and build lasting relationships with neighbors. This investment in community creates a ripple effect, contributing to the overall stability and vibrancy of neighborhoods.
The Financial Advantage
I started this post out about the dream of home ownership and how so many of us have it. While financial considerations shouldn't be the sole factor in homeownership decisions, they remain significant. However, the true financial impact of homeownership extends beyond monthly mortgage payments and potential appreciation. It's about building generational wealth, creating financial security, and having a tangible asset that can provide stability during economic uncertainties.
There are some people who don't want to be tied down to a living situation that they might not be able to easily get out of. Homeownership is more of a long-term commitment than renting a place for a year. Because of the money needed to close on a home with the down payment plus closing costs, a buyer will most likely lose money if they have to put it up for sale within a year or even longer. However, in the long term, most homeowners will build up equity.
When you are renting you are helping your landlord to build equity on the property plus make instant money from your rental payments. As a renter, you're not stuck in a place for any longer than your lease, but going from one rental to another won't build up future equity. Rents are so high now it's difficult for people to save for a down payment, so today's renters might be stuck in that cycle for a long time, even if they'd love to have a home of their own.
There are also other people that don't want the maintenance of owning a home. Keeping up a home definitely takes time, effort, and money. If I were in that position, I would still want to own a condo or townhouse that had a reasonable monthly HOA fee. Let them do the exterior work (but you always have to make sure what the HOA dues cover).
Some first-time buyers want a single-family home but can only afford a condo in the town they want to live in. They might not like renting and are planning on staying in the area. So they think they'll keep renting and try to save for a house. In the meantime, the prices of both condos and single-family homes are rising. If they start out in a condo and start building equity, they'll be ahead of the game when they feel that they're ready to buy a house.
They can also buy a starter home that needs a little work and updating like we did. I just showed a buyer a completely remodeled Scottsdale condo but she didn't like the complex it was in because it was too old-looking for her. Our little starter home was the stepping stone to the home we now live in. I see so many young people being very picky with their first place and they just keep renting.
Making the Decision
When considering homeownership, it's crucial to balance practical considerations with personal values and long-term goals. Questions to consider include:
- How does homeownership align with your lifestyle and values?
- What kind of community do you want to be part of?
- How might your space needs evolve over time?
- What level of maintenance responsibility are you comfortable with?
- How does homeownership fit into your longer-term financial and life plans?
Looking to the Future
As we look ahead, the meaning of homeownership continues to evolve. The rise of remote work has changed how people think about location and space requirements. Environmental concerns are influencing building and renovation choices. Social changes are reshaping what constitutes an ideal living situation.
It's essential to acknowledge that the path to homeownership faces new challenges in the 21st century. Rising property prices, particularly in urban areas, student loan debt, and changing work patterns have made the traditional route to homeownership more complex for many Americans. However, these challenges have also sparked innovation in housing solutions and financing options.
The Joy of Helping Others Find Their Place
My first home purchase and my attempt at trying it sell it by owner made me realize that a real estate agent is a needed service. It’s not simply about facilitating a transaction; it's about aiding people in crafting a habitat where they can unfold their dreams, irrespective of what those dreams entail.
Ultimately, the profound question remains: What does homeownership signify for you? Is it about gaining the freedom to personalize your place? The peace derived from owning something enduring? Or perhaps, homeownership represents an altogether different personal significance. Each person's journey to finding the meaning in homeownership is unique, reflecting their personal dreams and values.
Conclusion
The meaning of homeownership extends far beyond financial calculations or property rights. It's about creating a space that reflects your values, supports your lifestyle, and provides a foundation for building the life you envision. While the path to homeownership may look different for each person, its fundamental value as a source of stability, expression, and personal fulfillment remains constant.
As we continue to navigate changing economic landscapes and evolving social norms, the essence of homeownership—the ability to create and control one's living environment—remains a powerful draw for many Americans. Whether it's a tiny house in the woods or a high-rise condominium, owning a home continues to represent a unique combination of financial investment and personal fulfillment that few other investments can match.
Understanding this deeper meaning of homeownership can help inform better decisions about when, where, and how to pursue this significant life step. After all, a home is more than just a place to live—it's a foundation for building the life you want to lead.
If you're considering home ownership, or if you already own a home and are ready to move on, give me a call at 480-906-1500. Call me even if you're not quite there but have some questions. I'm here to help.
Posted by Judy Orr on
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