Re: renting versus owning

[http://dummy.us.eu.org/robert (Robert)]

Still using the lifetime debt calculations, if broken down by person
within a household, how much debt per person does a renter hold versus a
homeowner?

Breaking down the "lifetime debt" by person reveals an even starker
disparity because renter households are smaller than homeowner households.
While homeowners spread their fixed debt across more people, renters split
their escalating costs among fewer individuals.

1. Household Size Disparity

-   Homeowners: Average 2.61 residents per household.
-   Renters: Average 2.25 residents per household.

-   Impact: Homeowners benefit from a "density discount," spreading their
    housing costs across roughly 16% more people than renters.

2. Per-Person "Lifetime Debt" Calculation (30-Year Horizon)

Using the previous 30-year projections (Homeowner: ~$954k total; Renter:
~$1.65M total with 5% annual rent growth):

-   Homeowner Per-Person Debt:
    -   $954,000 total household cost ? 2.61 people = ~$365,500 per person.
    -   Status: This debt is extinguished after 30 years, leaving the person with
        a share of a paid-off asset.

-   Renter Per-Person "Debt":
    -   $1.65 million total household cost ? 2.25 people = ~$733,300 per
        person.
    -   Status: This is a perpetual liability with no asset recovery.

3. The Per-Person Ratio

The ratio of renter debt to homeowner debt per individual is approximately
2.0 to 1.

* For every $1 of lifetime housing debt a homeowner pays per person, a
  renter pays $2.01.
* This is significantly worse than the household-level ratio (1.73:1)
  because the renter lacks the benefit of larger household sizes to dilute
  the cost.

4. Long-Term Implications (50-Year Horizon)

If extended to a 50-year timeline (approx. age 25 to 75): 

* Homeowner: The per-person cost remains capped at ~$365,500 (as payments
  stop at year 30).
* Renter: The per-person cost explodes to roughly $2.1 million due to
  compounding rent increases divided by a static (or shrinking) household
  size.
* Result: Over a full lifetime, a renter effectively carries 5.7
  times more debt per person than a homeowner, with zero equity to show for
  it.