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Business Insider
28-05-2025
- Business
- Business Insider
A HENRY couple in San Diego who make $225,000 are renting because they don't want to become house-poor
Justin Ghio and his fiancé wanted to make the plunge into homeownership when interest rates plummeted at the height of the pandemic in 2020. They made offers on four houses in San Diego, but they were outbid on all of them. Soon enough, home prices and mortgage rates were soaring amid a buying frenzy, and they felt they'd missed their opportunity to buy. "I'd always hoped to own a home," Ghio said. "With the rising interest rates, it just fiscally wasn't seemingly responsible to make that decision to try to buy." But now, Ghio, a 35-year-old talent director, says he's relieved they didn't stretch their budget to buy. Renting is significantly cheaper than owning a home in San Diego, like in many hot housing markets, and Ghio is among a growing number of Americans choosing to keep renting rather than take on a hefty mortgage. Three years ago, the couple and their eight-year-old twin daughters moved into their current rental home in a quiet San Diego neighborhood near their kids' school. They pay $3,795 a month in rent for their four-bedroom, two-bath house with a pool. Ghio appreciates not having to worry about paying for home maintenance and repairs — their landlord provides regular gardening and pool service. And the rent is affordable. Between Ghio's salary and his fiancé's work as an esthetician, the couple brings in about $225,000 a year, broadly placing them among the ranks of "HENRYs", or those who are high-earning but not rich yet. They're enjoying the extra money they're saving by renting. "Renting feels like we make over $200,000. I think buying would feel like we're broke," Ghio said. "And you don't work 12, 15 years after school to feel broke again — at least, it's a hard pill to swallow." The decision not to buy felt especially strategic when Ghio was laid off from his previous job in talent acquisition last year. He applied for new jobs in multiple states, knowing that, because they rent, they had more flexibility to move. He's since found a new role at a translation services company in the city, but he's had to take a hefty pay cut. Are you renting a home longer than you thought you would, or have you become a renter again later in life? Share your experience with this reporter at erelman@ Zillow estimates that their rental house would sell for about $1 million. A mortgage on a comparable house in their neighborhood would likely far exceed their rent, not to mention the costs of home maintenance, insurance, and purchasing fees. If they were to buy their rental house with a 20% down payment and about a 7% interest rate, it would cost the couple about $5,300 a month, before taxes and insurance, according to Zillow's mortgage calculator. This isn't unusual. A study from the National Association of Realtors found that in 2024, homebuyers purchasing starter homes in 50 major cities spent over $1,000 more on housing costs each month than renters did. The couple has avoided becoming " house-poor," and instead, they budget more for vacations and their kids' extracurriculars. Ghio doesn't want to sacrifice the family's quality of life and "the ability to enrich our girls' childhood in a way that is unique and fun through experiences" just to own a home. The couple is also saving for their wedding and considering having a third child. "We're trying to be really pragmatic and just be like, we cannot afford a child if we buy a house," Ghio said. "The expenses would probably push us to the brink." Renting a home seems like the smartest choice for now. But if circumstances change down the road, Ghio said he's open to buying. "We're looking at things in two-year, three-year, four-year chunks," he said. "I'm not going to draw a line in the sand and say, 'No, never.'"
Business Insider
25-05-2025
- Business
- Business Insider
A millennial couple in San Diego who make $225,000 are renting because they don't want to become house-poor
Justin Ghio and his fiancé wanted to make the plunge into homeownership when interest rates plummeted at the height of the pandemic in 2020. They made offers on four houses in San Diego, but they were outbid on all of them. Soon enough, home prices and mortgage rates were soaring amid a buying frenzy, and they felt they'd missed their opportunity to buy. "I'd always hoped to own a home," Ghio said. "With the rising interest rates, it just fiscally wasn't seemingly responsible to make that decision to try to buy." But now, Ghio, a 35-year-old talent director, says he's relieved they didn't stretch their budget to buy. Renting is significantly cheaper than owning a home in San Diego, like in many hot housing markets, and Ghio is among a growing number of Americans choosing to keep renting rather than take on a hefty mortgage. Three years ago, the couple and their eight-year-old twin daughters moved into their current rental home in a quiet San Diego neighborhood near their kids' school. They pay $3,795 a month in rent for their four-bedroom, two-bath house with a pool. Ghio appreciates not having to worry about paying for home maintenance and repairs — their landlord provides regular gardening and pool service. And the rent is affordable. Between Ghio's salary and his fiancé's work as an esthetician, the couple brings in about $225,000 a year. They're enjoying the extra money they're saving by renting. "Renting feels like we make over $200,000. I think buying would feel like we're broke," Ghio said. "And you don't work 12, 15 years after school to feel broke again — at least, it's a hard pill to swallow." The decision not to buy felt especially strategic when Ghio was laid off from his previous job in talent acquisition last year. He applied for new jobs in multiple states, knowing that, because they rent, they had more flexibility to move. He's since found a new role at a translation services company in the city, but he's had to take a hefty pay cut. Are you renting a home longer than you thought you would, or have you become a renter again later in life? Share your experience with this reporter at erelman@ Zillow estimates that their rental house would sell for about $1 million. A mortgage on a comparable house in their neighborhood would likely far exceed their rent, not to mention the costs of home maintenance, insurance, and purchasing fees. If they were to buy their rental house with a 20% down payment and about a 7% interest rate, it would cost the couple about $5,300 a month, before taxes and insurance, according to Zillow's mortgage calculator. This isn't unusual. A study from the National Association of Realtors found that in 2024, homebuyers purchasing starter homes in 50 major cities spent over $1,000 more on housing costs each month than renters did. The couple has avoided becoming " house-poor," and instead, they budget more for vacations and their kids' extracurriculars. Ghio doesn't want to sacrifice the family's quality of life and "the ability to enrich our girls' childhood in a way that is unique and fun through experiences" just to own a home. The couple is also saving for their wedding and considering having a third child. "We're trying to be really pragmatic and just be like, we cannot afford a child if we buy a house," Ghio said. "The expenses would probably push us to the brink." Renting a home seems like the smartest choice for now. But if circumstances change down the road, Ghio said he's open to buying. "We're looking at things in two-year, three-year, four-year chunks," he said. "I'm not going to draw a line in the sand and say, 'No, never.'"
Yahoo
21-05-2025
- Business
- Yahoo
Not quite the American dream: Renting is becoming a better deal, even if you're wealthy or a retiree
Gen Z and millennials are delaying homebuying, and more older adults are renting. High home prices and maintenance costs are making renting more appealing than buying for many. Wealthy people are also choosing the flexibility and amenities that come with renting. Gen Zers and millennials are postponing buying their first home, a growing number of older people are renting, and tenants are staying in their rentals for longer. This adds up to a record-high number of renters and an increasing share of those renters in older generations. "Renting today isn't just for young adults starting out," said Nadia Evangelou, a senior economist for the National Association of Realtors. "It's actually a much more mixed picture. Over the past decade, we have seen more older millennials and Gen Xers staying in rentals longer, and even some boomers, for example, opting to rent later in life." The overall number of renters has grown over the last several years. There were 45.6 million renter-occupied housing units in the US in 2023, up from 39.7 million in 2010, based on the Census Bureau's American Community Survey. Are you renting a home longer than you thought you would, or have you become a renter again later in life? Share your experience with these reporters at erelman@ and mhoff@ The US is also seeing an uptick in older tenants. An Urban Institute projection found that the share of people 65 and older who rent their homes will grow from 22% in 2020 to 27% in 2040 — an additional 5.5 million renting households. Older Black renters will see the biggest jump, doubling in number between 2020 and 2040. A smaller share of US renter-occupied housing units were headed by people under 35 years old in 2023 than in 2010. Meanwhile, the share of rental households headed by someone 65 or older grew over that period. This embedded content is not available in your region. Renters are staying in their homes longer as well, per a Redfin analysis of Census Bureau data. "Renting is becoming less of a short-term stop and more of a long-term reality for many households," Evangelou said. This embedded content is not available in your region. The main reason people are renting for longer: the surging cost of homeownership. Home prices have soared across the country amid a housing shortage. At the same time, property taxes, home insurance, and home repair and maintenance costs are on the rise. All of that has made renting a better deal than buying in many places — a reversal of the historic norm. Indeed, homebuyers purchasing starter homes in 50 major cities in 2024 spent over $1,000 more on housing costs each month than tenants do. To be sure, many renters are struggling, too. Tenants' incomes aren't keeping up with rising housing costs, and a rising share of renters are cost-burdened, meaning they spend more than 30% of their income on housing. Some Americans are renting for longer by choice. Rich renters are on the rise. Many millionaire millennials and boomers with healthy savings, who could afford to buy a home, are opting instead to rent. They like the flexibility of a lease, the convenience of having a landlord handle home maintenance, and the amenities luxury rentals offer, like in-building doggy day care, dry cleaning, and yoga classes. "I think of renting as paying for a service, and liken it to a hotel," start-up founder Tori Dunlap, a 30-year-old multimillionaire, told BI last year. "Renting is flexible, and I don't have to worry about things that homeowners worry about, like committing to a particular place or neighborhood or dealing with a burst pipe." Some of these affluent renters opt instead to keep their money in the market or other more flexible, higher-return investments. "People are reevaluating whether or not they want their homes to be their asset wealth-builder," Doug Ressler, an analyst at Yardi Matrix, part of the property-management software firm Yardi, said. He added that higher-income tenants "want to have the freedom and mobility of time, and they don't want to be saddled with the things that a house brings with it." Some financial advisors are also challenging the conventional wisdom that buying a home is a smarter financial decision than renting. "You've been lied to about buying property," Ramit Sethi, a popular financial advisor and star of the Netflix show "How to get rich," said in a 2023 video titled "Why I Don't Own a House as a Multi-Millionaire." Sethi recommends that those who buy a home take into account the "phantom" costs of maintenance, repairs, insurance, and buying and selling fees, and urges them to maintain diverse investments. Read the original article on Business Insider Sign in to access your portfolio
Business Insider
21-05-2025
- Business
- Business Insider
Not quite the American dream: Renting is becoming a better deal, even if you're wealthy or a retiree
Gen Zers and millennials are postponing buying their first home, a growing number of older people are renting, and tenants are staying in their rentals for longer. This adds up to a record-high number of renters and an increasing share of those renters in older generations. "Renting today isn't just for young adults starting out," said Nadia Evangelou, a senior economist for the National Association of Realtors. "It's actually a much more mixed picture. Over the past decade, we have seen more older millennials and Gen Xers staying in rentals longer, and even some boomers, for example, opting to rent later in life." The overall number of renters has grown over the last several years. There were 45.6 million renter-occupied housing units in the US in 2023, up from 39.7 million in 2010, based on the Census Bureau's American Community Survey. Are you renting a home longer than you thought you would, or have you become a renter again later in life? Share your experience with these reporters at erelman@ and mhoff@ The US is also seeing an uptick in older tenants. An Urban Institute projection found that the share of people 65 and older who rent their homes will grow from 22% in 2020 to 27% in 2040 — an additional 5.5 million renting households. Older Black renters will see the biggest jump, doubling in number between 2020 and 2040. A smaller share of US renter-occupied housing units were headed by people under 35 years old in 2023 than in 2010. Meanwhile, the share of rental households headed by someone 65 or older grew over that period. Renters are staying in their homes longer as well, per a Redfin analysis of Census Bureau data. "Renting is becoming less of a short-term stop and more of a long-term reality for many households," Evangelou said. Renting could be a smart financial move The main reason people are renting for longer: the surging cost of homeownership. Home prices have soared across the country amid a housing shortage. At the same time, property taxes, home insurance, and home repair and maintenance costs are on the rise. All of that has made renting a better deal than buying in many places — a reversal of the historic norm. Indeed, homebuyers purchasing starter homes in 50 major cities in 2024 spent over $1,000 more on housing costs each month than tenants do. To be sure, many renters are struggling, too. Tenants' incomes aren't keeping up with rising housing costs, and a rising share of renters are cost-burdened, meaning they spend more than 30% of their income on housing. Some Americans are renting for longer by choice. Rich renters are on the rise. Many millionaire millennials and boomers with healthy savings, who could afford to buy a home, are opting instead to rent. They like the flexibility of a lease, the convenience of having a landlord handle home maintenance, and the amenities luxury rentals offer, like in-building doggy day care, dry cleaning, and yoga classes. "I think of renting as paying for a service, and liken it to a hotel," start-up founder Tori Dunlap, a 30-year-old multimillionaire, told BI last year. "Renting is flexible, and I don't have to worry about things that homeowners worry about, like committing to a particular place or neighborhood or dealing with a burst pipe." Some of these affluent renters opt instead to keep their money in the market or other more flexible, higher-return investments. "People are reevaluating whether or not they want their homes to be their asset wealth-builder," Doug Ressler, an analyst at Yardi Matrix, part of the property-management software firm Yardi, said. He added that higher-income tenants "want to have the freedom and mobility of time, and they don't want to be saddled with the things that a house brings with it." Some financial advisors are also challenging the conventional wisdom that buying a home is a smarter financial decision than renting. "You've been lied to about buying property," Ramit Sethi, a popular financial advisor and star of the Netflix show "How to get rich," said in a 2023 video titled "Why I Don't Own a House as a Multi-Millionaire." Sethi recommends that those who buy a home take into account the "phantom" costs of maintenance, repairs, insurance, and buying and selling fees, and urges them to maintain diverse investments.
Yahoo
01-05-2025
- Business
- Yahoo
3 days in the office is the sweet spot — any more and staff start disengaging from work, PwC HR boss says
PwC has been tracking its employees' office attendance for three months. The firm's HR boss said three days in the office is best for employee engagement. PwC's internal data also showed that working in the office boosted productivity, she said. The Big Four firm PwC has been collecting data for three months on its latest RTO mandate, and the results are in — three days in the office is the sweet spot for employee engagement. In January, PwC increased its weekly in-office requirement for its 23,000 UK employees to a minimum of three days. The accounting firm had previously asked staff to come into the office two or three days a week. Since the new policy began, PwC has been monitoring employees' attendance through their badge swipes into the office and shared IP addresses, if staff are out at client sites, Phillippa O'Connor, PwC's UK chief people officer, told a UK government committee on home-based working. Staff can use a self-declaration form to highlight whether there's a valid reason they can't come into the office, which will be reflected in the data. After the first quarter of monitoring employees, O'Connor said there was "a really clear correlation between time in the office and the utilization of our people." PwC also cross-referenced the attendance data with preliminary data from its annual employee engagement survey and found that those coming in three days a week were the most engaged. "The initial data there shows us that where we have people in the office three days a week, they are more engaged," she said. "Where they're in the office five days a week, they're less engaged." The accounting giant believes that in-person work for the majority of the week is best for its business and clients and for driving innovation, O'Connor said. It's also "absolutely critical" for training the 1,000 graduates who join the firm's UK branch every year, she added. O'Connor told the government committee that this was "not a one policy." PwC is in "listening mode," and providing flexibility and exemptions, particularly for parents and neurodivergent employees, is key to the firm's approach, she said. Lindsay Pattison, the chief people officer of the advertising giant WPP, also gave evidence to the committee, which was set up to consider the effects and development of home-based working in the UK. WPP has asked employees to return to the office four days a week, including two Fridays a month. After the policy was introduced, thousands signed a petition calling on the firm to rethink its four-day RTO mandate. Pattison said that WPP was monitoring general email traffic and employees' use of AI tools and that both measures started to decline on Fridays when staff worked from home. PwC declined to comment. Have a tip? Contact this reporter via email at pthompson@ or Signal at Polly_Thompson.89. Use a personal email address and a nonwork device; here's our guide to sharing information securely. Read the original article on Business Insider Sign in to access your portfolio
