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Factors Affecting Housing Selection

Instructor: Artem Cheprasov

Artem has a doctor of veterinary medicine degree.

When looking for a place to live, would you rather rent or buy? This lesson covers some of the many factors that affect whether people decide to rent or buy a home or apartment.

Housing Selection

Have you ever bought or rented a dwelling of any sort? Why did you choose to rent instead of buy? Are you renting or buying an apartment or home?

There are many answers to these questions, and if you did offer up an answer, there is probably a factor behind your selection. That's what this lesson will explore: the many reasons and factors why people may choose their housing selection.

Age

One factor to consider is age. If you're just starting out fresh from college, are single, and have no kids in sight, you're probably going to choose a smaller dwelling. This could be a small home out in the country, an apartment in a city, or (if you can afford it) a closet in San Francisco. If you're a bit older, you might be thinking of starting a family with your partner. In that case, you might go for a larger apartment, town home, or home. If the kids are living on their own and you're nearing retirement, a huge home and yard may be a bit of a hassle to take care of. Downsizing to an apartment or smaller home might be an option. Finally, senior citizens may consider living in specific retirement communities or even nursing homes.

Finances

Another important consideration is finances. Of course, this is relative. An income of $100,000 per year may be more than enough for a home in one part of the country but barely enough for a one bedroom apartment in another. But, all else equal, people with more money to spend will be more likely to purchase a large dwelling than others.

Income also ties in with deciding to rent or own the condominium or house. People with smaller incomes may opt to rent, while those with a higher income may choose to buy. Finances also have to deal with credit scores. People with poor financial histories may not be able to obtain a loan for a mortgage and will be forced to rent instead.

Other Factors

A person's age (and thus relative stage of life) and financial abilities are just two factors affecting housing selection. There's so much more. This includes personal choices.

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