Why Renting vs Owning Is No Longer a Simple Choice
As communities evolve and consumer expectations shift, the traditional debate of renting vs owning takes on new meaning. In the latest Communities Connected podcast,, Alosant CEO April LaMon welcomed back Teri Slavik-Tsuyuki, founder of tst-inc., to share fresh findings from Wave 4 of the America at Home Study. This longitudinal research offers an eye-opening perspective on how housing choices, motivations, and emotional responses are transforming across the country.
Through this conversation, it becomes clear: renting vs owning is no longer a binary financial decision—it’s a nuanced, emotional, and wellness-driven consideration. This article unpacks the key insights shared by Teri and April and provides actionable reflections for land developers, builders, and community planners alike.
Confidence in Home Decisions Is Declining
Teri opened the conversation with a surprising trend: “There’s been a more than 30% increase in the number of people who say they're uncertain or have a greater anxiety about making housing choices today”.
This anxiety isn't purely financial. It includes confusion around:
- Product clarity
- Product differentiation
- Adaptability
- Cost predictability… both in the purchase price [and] the operating costs of the home
In a market of fast-changing options and rising expenses, consumers want certainty. Builders who can simplify choices and provide transparent, adaptable offerings will rise to the top. The renting vs owning decision is less about income level and more about clarity and control.
People Are Open to Renting—and Re-Renting
Traditionally, homeownership was considered the final step in personal financial growth. Not anymore.
Teri emphasized a stunning finding: “24% who were homeowners have chosen to now become renters.” And perhaps more importantly: “9% of people told us in this study, ‘I no longer aspire to be a homeowner’”.
Why the reversal?
- “It’s not just the purchase price, [it’s] insurance, taxes, maintenance, HOA dues”
- These operating costs shape “a different financial and a different emotional equation”
For many, renting offers a reprieve from unpredictable expenses. It's not a compromise—it’s a conscious, values-based choice that aligns with emotional and lifestyle priorities.
Rent-to-Own Is the Middle Ground Gaining Momentum
Rent-to-own isn’t just a niche experiment. According to the study, “50% of people told us they’re open to a rent to own model… up from 33% just two years ago”.
This shift reflects openness to flexibility:
- A desire for “alternative paths” to ownership
- A redefinition of housing not as an investment but as a “choice” shaped by life stages and personal values
Developers can respond by creating programs that gradually build equity or offer conversion options. Consumers are saying clearly: give us more pathways that fit real life—not idealized checklists.
The Definition of Home Is Changing
One of the study’s most telling questions asked, “What does the concept of home mean to you?”
The answer? It’s getting emotionally heavier:
- “Home feels like a financial worry. That was a 7% increase.”
- “Fewer people… said, home equals a place that I own, and that dropped by 3%”
This isn’t a fluke. Teri described it as a “seismic shift” when viewed against the study’s 6,000-person sample. It reveals a core transformation in how Americans connect emotionally to home—and in the renting vs owning discussion, renting is no longer second-best.
Wellness Is the New Driver of Housing Decisions
In a departure from historic trends, “Wellness is the number one purchase motivator now for two studies in a row”. It’s not just about saving money on utilities—it’s about building a life that supports physical, emotional, and mental health.
When asked how they’d spend $50,000 on their home, consumers didn’t prioritize granite countertops or bonus rooms. They said:
- A better equipped and more modern kitchen for cooking
- Energy efficiency… insulation, HVAC, more efficient lighting
- Clean water… whole house water filtration systems
- Clean air… always-on air filtration systems
- Solar battery storage or solar power generation
Renting vs owning becomes less relevant when the decision revolves around wellness. Whether someone rents or buys, they want a home that promotes their health.
People Want Smaller, Smarter Spaces
The podcast revealed an emerging trend toward intentional downsizing:
- Smaller home—40% of people said, yes, I want that, versus 21% just a few years ago
- Smaller yard—41% said, yes, I’ll do that
- Smaller or no garage—more than a third of respondents said that was important
Teri made it clear: “Smaller, nicely designed homes don’t mean cheap”. They reflect a sophisticated understanding of what people truly value—less space, more purpose.
The Built Environment Drives 85% of Health Outcomes
This quote might be the most important one of all: “85% of our health outcomes are based on the built environment”.
What does this mean for land developers and planners?
- Homes should support walkability, clean water, and social interaction
- Communities must integrate mixed uses, not siloed zoning
- Safety, sustainability, and connectedness aren’t luxury add-ons—they’re health strategies
Renting vs owning doesn’t change the fundamental need for healthy places. Whether someone is in a luxury condo or a mid-market rental, the environment around them will shape their wellbeing.
What Developers Must Do Differently
This isn’t just about design. It’s about listening.
Teri urged industry leaders to “start with the consumer, not the product,” and to “experiment in small levels”. She warned against “me-search vs research,” encouraging builders to avoid assuming preferences based on sales data alone.
Her challenge to the industry:
- Rethink zoning: “Parking requirements… and things that are just old constructs really need to be re-looked at”
- Elevate design: “Bring back the love of design… not just rooms and bedroom and bathroom counts”
- Match actual household needs: “64% of us are one- and two-person households in America today”
Case Studies of Building With Wellness First
Teri cited Rancho Mission Viejo in Orange County, CA as a gold standard: “They literally took every domain of wellness and looked at it on the land plan”.
She also highlighted:
- Indigo in Houston: “Every second street is a car-free green muse that gives you someplace to walk”
- Moxie in Lockhart, TX: “Measuring success differently… things like life per square foot”
- Ramble by Hillwood: “Reclaiming an arena… into something active and engaging”
These developers aren’t selling floor plans. They’re delivering health, connection, and purpose—whether their buyers are renting or owning.
Generational Shifts Are Redefining Ownership Norms
While housing has long been shaped by generational expectations—homeownership as a sign of maturity or success—that idea is now unraveling. “Not everybody wants to live in a big, giant home,” Teri explained. “People want something that works for them at the stage of life they're at now”.
This shift spans across:
- Millennials and Gen Z, who prioritize flexibility, location, and tech-enabled wellness.
- Boomers and Gen X, some of whom are downsizing not just for convenience but to support wellness or live near adult children.
- Multi-generational households, now more common, requiring homes to flex across uses and life stages.
Whether renting or owning, the core motivator is no longer about climbing a property ladder—it’s about aligning living arrangements with personal values and practical realities.
Product-Market Mismatch Is Fueling Frustration
One of the underlying tensions in today’s renting vs owning decisions is the disconnect between what's being built and what people actually want. As Teri put it, “We're not building for 64% of the population right now who are one- and two-person households in America today”.
This market mismatch includes:
- Oversupply of large, three- to four-bedroom homes that don’t reflect shrinking household sizes.
- Underdeveloped options for mid-market renters who still want premium experiences.
- A lack of flexible design that anticipates shifts in use, such as aging in place or remote work.
Teri emphasized, “We’ve really got to come back to being in service of people and starting with the consumer… not the product”. That means creating homes and neighborhoods with purpose—not just plans.
Developers Must Embrace Measured Risk to Meet Demand
Adaptation doesn’t require abandoning what works—it calls for curiosity, humility, and a willingness to experiment in small ways, listen deeply, and build trust along the way.
This mindset shift includes:
- Piloting rent-to-own clusters or mixed-tenure blocks within a larger development.
- Partnering with wellness experts to design amenities beyond gyms and pools.
- Offering modular or right-sized units to meet shifting household needs.
Developers who can move from transaction-driven models to trust-driven partnerships will thrive. And those willing to “bring back the love of design” will help re-center homes as sources of joy, not just inventory.
Conclusion: Housing Is No Longer Just a Product—It’s a Promise
The conversation around renting vs owning has evolved far beyond interest rates or mortgage calculators. It now encompasses something deeper: how people want to live, what they value most, and what kind of future they’re building for themselves and their families.
As Teri Slavik-Tsuyuki put it, “It’s a really noble opportunity that we all have… to really make the world better for all”. Whether someone chooses to rent, buy, or opt into a hybrid model, their expectations have changed. They’re looking for:
- Clarity and predictability in their housing choices
- Homes that support their physical and emotional wellness
- Flexibility to grow, shrink, or shift across life stages
- A built environment that empowers—not burdens—them
For developers and planners, this means listening before designing. It means shifting from product-first to people-first. And above all, it means operating as a trusted advisor, building with your residents—not just for them.
At Alosant, we amplify your community and brand—not ours. We believe that by combining great technology with grounded, human insight, we can help you create communities where people feel seen, supported, and proud to stay—whether they’re renting, owning, or reimagining both.
Let us help you build what's next.
FAQs
Why are more Americans choosing to rent after owning a home?
Teri explained that “24% who were homeowners have chosen to now become renters.” The decision wasn’t purely financial—it came down to the total cost of owning. “It’s not just the purchase price. It’s insurance, taxes, maintenance, HOA dues… all of those things factor in,” she noted. This shift underscores the emotional and financial burden ownership can carry in today’s market.
Is the aspiration to own a home declining?
Yes. According to the study, “9% of people told us in this study, ‘I no longer aspire to be a homeowner’”. This represents a meaningful cultural shift and reflects how many Americans are redefining what stability and success look like in their lives.
Why is there growing interest in rent-to-own models?
Rent-to-own is becoming a practical alternative. “50% of people told us they’re open to a rent to own model… up from 33% just two years ago,” Teri shared. It’s an approach that offers flexibility while still creating a path to ownership—on the consumer’s terms.
What are people prioritizing when investing in their homes today?
The answers reflect a focus on health and sustainability: “Energy efficiency… insulation, HVAC, more efficient lighting; clean water… whole house water filtration systems; clean air… whole home, always-on air filtration systems; solar battery storage, or solar power generation.” Consumers are choosing homes that support long-term wellness.
Are smaller homes really in higher demand now?
Absolutely. “Smaller home—40% of people said, yes, I want that, versus 21% just a few years ago,” Teri said. People are more open to “a smaller yard—41%” and “smaller or no garage—more than a third of respondents” preferred that, too. It reflects a desire for purposefully designed spaces over sheer square footage.
What advice should developers take from these findings?
Teri’s message was clear: “We’ve really got to come back to being in service of people and starting with the consumer, not the product.” She added, “Experiment in small levels… listen and build trust, and people will come along for the ride.” This shift is about leadership grounded in empathy and data-informed action.
What salary can afford $3,000 rent?
A commonly recommended guideline is that housing costs should not exceed 30% of your gross monthly income. To afford $3,000 in rent under that rule, a household would need to earn about $10,000 per month, or $120,000 annually. However, lifestyle, debt load, and location may shift that threshold. Renters are increasingly weighing not just “Can I afford this?” but “Is this aligned with my values and well-being?”
What is the 5% rule when comparing renting vs buying?
The “5% rule” is a simplified way to compare the financial cost of renting vs owning. It estimates the annual unrecoverable cost of owning a home (property taxes, maintenance, and opportunity cost of capital) as roughly 5% of the home’s value. If rent is less than 5% of the home’s value annually, renting may be the more cost-efficient choice. It reframes the decision as one about long-term flexibility and investment—not just pride of ownership.
Further Reading By Alosant
- The Pearl San Antonio: A Placemaking Case Study That Works
- How to Design Magnetic Public Spaces That Attract People
- Mixed-Use Spaces That Do More Than Check a Box
Further Reading
- America at Home Study Official Site
- Global Wellness Institute
- Housing Innovation Alliance
- Mascaro Center for Sustainable Innovation
