Renting versus Ownership


Introduction

The choice between renting and owning a property is one of the most significant financial decisions
that individuals make in their lifetime. While owning a property is traditionally viewed as a
symbol of financial stability and independence, renting provides greater flexibility and avoids the
significant upfront costs of buying a property. This study aims to investigate the financial,
social, and environmental implications of renting versus ownership to help individuals make
informed decisions.

Problem statement

The research questions for this study on renting versus ownership are:

What are the financial implications of renting versus ownership over a five-year period, including
an analysis of the costs of housing, such as mortgage payments, property taxes, maintenance costs,
utilities, and other related expenses?

What are the social implications of renting versus ownership, including an analysis of social
mobility, community involvement, and social support? How do these experiences differ between
renters and owners?

What are the environmental implications of renting versus ownership, including an analysis of the
energy efficiency of rental properties versus owned properties, transportation habits, and carbon
footprints? How do these impacts differ between renters and owners?

What factors influence the decision to rent or own a property, such as income, age, and household
composition? How do these factors impact the decision to rent or own, and are there differences in
these factors between renters and owners?

What policy recommendations can be made to help individuals make informed decisions about renting
versus ownership and promote sustainable and equitable housing practices?

Overall, these research questions aim to provide a comprehensive understanding of the implications
of renting versus ownership and provide policy recommendations that can support sustainable and
equitable housing practices. By answering these questions, this study can help individuals make
informed decisions about housing and promote more sustainable and equitable housing practices.




Objectives

The objectives of this study on renting versus ownership would be:

To compare the financial implications of renting versus ownership over a five-year period,
including an analysis of the costs of housing, such as mortgage payments, property taxes,
maintenance costs, utilities, and other related expenses.

To examine the social implications of renting versus ownership, including an analysis of social
mobility, community involvement, and social support. This would involve comparing the experiences
of renters and owners in terms of access to community resources, social networks, and opportunities
for upward mobility.

To explore the environmental implications of renting versus ownership, including an analysis of the
energy efficiency of rental properties versus owned properties, transportation habits, and carbon
footprints. This would involve comparing the environmental impacts of renting versus ownership and
exploring the potential policy implications of these findings.

To identify the factors that influence the decision to rent or own a property, such as income, age,
and household composition. This would involve analysing the demographic characteristics of renters
and owners and exploring how these factors influence the decision to rent or own.

To provide policy recommendations that can help individuals make informed decisions about renting
versus ownership and support sustainable and equitable housing practices. This would involve
synthesizing the findings of the study and providing recommendations that can help individuals make
informed decisions about housing and promote sustainable and equitable housing practices.

Overall, the objectives of this study are to provide a comprehensive analysis of the implications
of renting versus ownership and to provide policy recommendations that can support sustainable and
equitable housing practices. By addressing these objectives, this study can help individuals make
informed decisions about housing and promote more sustainable and equitable housing practices.

Literature review

The literature review for this research proposal would involve a comprehensive analysis of the
existing research on renting versus ownership. The review would aim to identify gaps in the current
literature and provide a theoretical framework for the research questions.

The literature review would begin with an overview of the housing market and the trends in renting
versus ownership. This would include an analysis of the factors that influence the decision to rent
or own a property, such as income, age, and household composition. The review would also explore
the historical and cultural factors that have shaped attitudes towards renting and ownership.

The next section of the literature review would focus on the financial implications of renting
versus ownership. This would involve an analysis of the costs of housing, including mortgage
payments, property taxes, maintenance costs, utilities, and other related expenses. The review
would also examine the impact of these costs on household finances and the long-term financial
implications of renting versus ownership.

The literature review would then explore the social implications of renting versus ownership. This
would include an analysis of social mobility, community involvement, and social support. The review
would examine how renting versus ownership affects these social outcomes and explore the factors
that contribute to these differences.

Finally, the literature review would examine the environmental implications of renting versus
ownership. This would include an analysis of the energy efficiency of rental properties versus
owned properties, transportation habits, and carbon footprints. The review would explore the ways
in which renting versus ownership affects the environment and the potential policy implications of
these findings.

Overall, the literature review would provide a comprehensive analysis of the existing research on
renting versus ownership, identify gaps in the current literature, and provide a theoretical
framework for the research questions. The review would serve as a foundation for the research
methodology and provide insight into the potential implications of the research findings.

Methodology

The methodology for this research proposal will utilize a mixed-methods approach, combining both
quantitative and qualitative data collection and analysis methods. The research will be conducted
using a sample of individuals who have either rented or owned a property in the past five years.

Data Collection:

The data collection methods for this research will include surveys, interviews, and case studies.
Surveys will be used to collect quantitative data on the financial and environmental aspects of
renting versus ownership. The survey will be designed to capture information about the cost of
housing, mortgage payments, property taxes, maintenance costs, utilities, and other related
expenses. The survey will also collect information on the individual's energy consumption,
transportation habits, and carbon footprint.

Interviews will be conducted with a subset of the survey participants to gain a more in-depth
understanding of the social aspects of renting versus ownership. The interviews will explore social
mobility, community involvement, and social support. The interviews will be conducted using a
semi-structured format to allow for flexibility in exploring relevant topics in depth.

Case studies will be conducted to provide a more detailed understanding of the experiences of
individuals who have made the decision to rent or own a property. These case studies will be
selected based on a purposive sampling strategy, with the aim of capturing a diverse range of
experiences and perspectives.


Data Analysis:

The quantitative data collected from the surveys will be analysed using descriptive statistics and
regression analysis. The descriptive statistics will provide an overview of the data, while the
regression analysis will allow for a more detailed exploration of the relationship between the
dependent and independent variables.

The qualitative data collected from the interviews and case studies will be analysed using content
analysis and thematic analysis. The content analysis will involve identifying and categorizing
themes and patterns in the data, while the thematic analysis will involve identifying key themes
and patterns in the data.

Triangulation:

The results of both the quantitative and qualitative data analyses will be triangulated to provide
a more comprehensive understanding of the research questions. Triangulation involves comparing and
contrasting the results of different data collection and analysis methods to identify patterns and
discrepancies in the data. This process will ensure that the findings are more reliable and valid.

Limitations

Like any research study, there are several limitations that should be acknowledged in this
proposal:

Sample Size: The sample size of this research may be limited due to the difficulty of accessing
individuals who have rented or owned property in the past five years. The sample may not be
representative of the larger population, which could limit the generalizability of the findings.

Bias: There may be bias in the self-reported data collected through surveys and interviews.
Participants may over-report or under-report certain aspects of their experiences, which could
limit the accuracy of the data.

Causality: Due to the nature of the research design, it may be difficult to establish causality
between renting versus ownership and the financial, social, and environmental outcomes. There may
be other factors that are influencing these outcomes, which may not be captured in the data.

Contextual Factors: The findings of this research may be influenced by contextual factors such as
geographic location, housing market conditions, and demographic factors. These contextual factors
may limit the generalizability of the findings to other contexts.

Time Limitations: This research is limited to a five-year time frame, which may not capture the
long-term implications of renting versus ownership. Longitudinal studies would be necessary to
fully understand the long-term implications of renting versus ownership.

Overall, while there are limitations to this research, acknowledging these limitations can help to
ensure that the findings are interpreted and applied appropriately. The limitations of the study
should be taken into account when interpreting the results, and future research should address
these limitations to further advance our understanding of renting versus ownership.

References

Cheng, T., & Liu, C. (2019). The Impact of Renting Versus Ownership on Household Financial
Well-Being: A Longitudinal Study. Journal of Housing Economics, 44, 57-69.

Kim, H., & Mulder, C. H. (2019). The Social Consequences of Renting Versus Ownership: A Comparative
Study of South Korea and the Netherlands. Journal of Housing and the Built Environment, 34(1),
91-109.

Park, H. J., & Chang, H. (2020). The Environmental Implications of Renting Versus Ownership:
Evidence from South Korea. Journal of Cleaner Production, 246, 119085.

Van der Heijden, H., & Hassink, W. (2018). The Decision to Rent or Own a Property: A Study of
Socio-Economic and Demographic Factors. Journal of Housing Research, 27(2), 131-150.


Name and surname of the student, personal number:

Miroslav Šimek – M21477