The benefits and downsides for 'forever renters'
UC business professors tell Business Insider that home ownership, renting both have their advantages
A growing number of people expect to rent their entire lives instead of buying a home, which presents potential benefits and downsides for these “forever renters,” University of Cincinnati professors told Business Insider.
David Brasington, PhD, James C. and Caroline Kautz Chair in Political Economy and professor of economics
Some renters haven't purchased a house because of affordability concerns, but others have chosen to rent to provide flexibility to move and to avoid home ownership costs such as maintenance and repairs.
“You have to calculate all the costs of owning a home, like maintenance and repair, lawn upkeep, insurance, and so forth,” said David Brasington, PhD, the James C. and Caroline Kautz Chair in Political Economy and economics professor in UC’s Carl H. Lindner College of Business. “There's also a question of financing. To rent, you have to come up with monthly rent plus a deposit. To buy, you have to come up with a down payment of 20%. It's also cheaper to change the place you're renting than the place you're buying because of real-estate-agent fees.”
Eunjee Kwon, PhD, assistant professor of real estate
While there are good reasons for people to rent, Eunjee Kwon, PhD, an assistant professor of real estate in UC's Lindner College of Business, said renters lose out on the ability to build equity that comes with home ownership.
“Home ownership is important because rent payments do not build equity, and there is always the potential for rent increases, making renting less affordable over time,” Kwon said. “Renters also face less stability due to eviction or non-renewal risks, especially in major U.S. cities.”
Featured image at top: The front of a house. Photo/rivage via Unsplash
Impact Lives Here
The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.
Related Stories
Lindner graduate students shine in international simulation competition
November 10, 2025
Five master’s of information systems (MS IS) students took home fifth place out of 23 universities at the International ERPsim Competition hosted by HEC Montreal during the recent spring semester. The competition tests students’ knowledge of enterprise resource planning (ERP) software and their ability to adapt to challenging business problems.
Sugar overload killing hearts
November 10, 2025
Two in five people will be told they have diabetes during their lifetime. And people who have diabetes are twice as likely to develop heart disease. One of the deadliest dangers? Diabetic cardiomyopathy. But groundbreaking University of Cincinnati research hopes to stop and even reverse the damage before it’s too late.
Is going nuclear the solution to Ohio’s energy costs?
November 10, 2025
The Ohio Capital Journal recently reported that as energy prices continue to climb, economists are weighing the benefits of going nuclear to curb costs. The publication dove into a Scioto Analysis survey of 18 economists to weigh the pros and cons of nuclear energy. One economist featured was Iryna Topolyan, PhD, professor of economics at the Carl H. Lindner College of Business.