Some renters say homeownership isn't part of their American Dream: Renting is 'really freeing for me'

Owning a home has long been part of the American Dream. But in the country's 250th year, many Americans feel the goal, a milestone of adulthood and a marker of financial success, eludes them. Homeownership is something many people still aspire to. More than half (58%) of respondents said they'd need to own a home to feel they'd achieved the American Dream, according to a CNBC and SurveyMonkey American Dream Pulse Survey, second only to reaching financial stability. But housing prices, borrowing costs and homeownership expenses are high. While homeowners can still build long-term wealth through their properties, experts say amassing equity can take longer today than it did for buyers in previous decades, given higher expenses and decelerating home value appreciation in today's market conditions. What's more, renting is now cheaper than owning in every large metro in the country, according to a January LendingTree analysis of Census data. But the decision is increasingly swayed by more than the immediate costs: Over roughly the last decade, a growing share of people also say it's more convenient or flexible to rent, it's less financially risky, and they prefer it, for the short- or long-term. "I never stopped and asked myself: Is it a value of mine to actually own property?" says Marina Brochado, who bought and sold four different homes throughout her lifetime before she returned to renting in her 40s. Homeownership, she says, wasn't worth the hassle. Even millionaire renters, who could afford to buy a home in cash, are on the rise. "Why would I spend more to own a worse place in a worse neighborhood, that requires me going to the worst place on Earth, Home Depot, every Saturday?" says personal finance expert Ramit Sethi, who says renting in both New York City and Los Angeles is a better financial and lifestyle decision for his family than buying in either location. Higher-income households have been driving rental demand in the last five to 10 years, says Whitney Airgood-Obrycki, senior research associate at Harvard Joint Center for Housing Studies. That means a greater demand for buildings with premium amenities or space for a couple to grow their family. There are now more options in the rental market to suit Americans' changing tastes and evolving needs, from downtown apartments to single-family rentals to suburban options with a fenced-in yard, Airgood-Obrycki says. While homeownership remains out of financial reach for a growing share of Americans, she says, there's also "a shift in what's available and what's culturally acceptable given how expensive it is to buy." With other housing options now available, the dream is changing for some Americans. CNBC Make It spoke with renters around the country — millionaires, former homeowners, forever renters — for their thoughts on whether owning a home is still a part of their American Dream. As told to Jennifer Liu. Interviews have been edited and condensed for clarity. Marina Brochado, 44, lives with her wife, Brenna Brochado, 41, and 15-year-old teenager outside of Boston. They pay $2,900 per month to rent a two-bedroom, 2½ bathroom townhouse with a finished basement. I've bought and sold four different homes throughout my life. I decided to go back to renting about three years ago, and it's the best decision I've ever made. I got married in 2005 and we purchased our first home in 2008 in Raleigh, North Carolina. It was a four-bedroom, 2½ bathroom with a yard on a corner lot. It had a white picket fence and everything. It just felt like the thing to do: You get married, you buy a house, you get a dog, you have a kid. We moved to the Boston area around 2012 after my daughter was born. We rented a condo and ended up buying it. In 2016 we sold the condo and bought what was supposed to be our forever home. Then I split up with my ex, so we sold that. After my divorce, I bought a condo by myself in 2021, and a year into it, I realized that it was the biggest mistake I had made. All I did was look around and think about all the things that needed to get fixed. In my late 30s, I realized I'd rather use my time and money to travel, see live music, go on wellness retreats, or get really good Red Sox tickets. I went back to renting in 2023. My rent is $2,900. My last mortgage was around $2,200. The increased monthly cost is worth it because it's about the mental load for me. I feel like I'm so much more available to being a parent and a partner because I'm not spending all of my time stressing about when the next thing breaks, can I afford it? In our rental, we are able to afford someone to help clean or walk the dog when my wife and I have to work. I am Brazilian, so I moved here for the American Dream when I was 14. I thought I had made it when I got the white picket fence and the marriage. When I think about the American Dream now, it's more about being able to provide for a life that has the least amount of stress possible. We daydream about van

Some renters say homeownership isn't part of their American Dream: Renting is 'really freeing for me'

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