Oklahoma Academic Standard:

PFL.10 The student will explain and compare the responsibilities of renting versus buying a home.

Objective:

PFL.10.1 Explain the advantages and disadvantages of renting versus buying a home by comparing how various housing options meet different needs and wants.

In a Nutshell

This objective focuses on the challenges of finding a place to live, including analysis of different alternatives, as well as the costs and benefits of renting versus home ownership. The learning objective requires students to identify different kinds of housing options, understanding that various types of housing can meet an individual’s unique circumstances and needs during their lifetime.

Teacher Actions:

Student Actions:

• Explain the differences between owning and renting by encouraging students to brainstorm their preconceptions and experiences.

• Engage students in a classroom discussion, creating a t-chart to identify and describe the financial responsibilities of renting versus home ownership.

• Interview an adult regarding the cost of renting and homeownership in order to gain understanding of real-life scenarios. 

• Explain which housing options may be best based their own expected financial situations and stages of life.

• Conduct research of community rental costs, home prices, and estimated monthly payments, comparing options available.

Key Concepts and Content:

Misconceptions:

renting, lease, landlord, lessee, cost of living, mortgage, equity, utilities, down payment

• Some students fail to realize that many forms of housing can be advantageous to individuals, depending of changing needs during a lifetime. 

• Many students may be unfamiliar with the initial costs and maintenance requirements of owning a house.

• Many students may be unaware of the conditions of a lease and responsibilities of renters versus lessors. 

 Instructional Resources

Recommended Lesson Ideas and Presentations

•  Renting versus Buying: Housing Alternatives is a lesson provided by the Oklahoma Council on Economic Education which asks students to identify various housing alternatives. Students come to an understanding that the best alternative is to find a place that is both affordable and appropriate for their personal lifestyle and circumstances.

•  Housing Options is a NEW classroom presentation version of the student lesson, enhanced with visuals, multiple video clips, suggested formative assessments, and discussion questions. (Updated by the Oklahoma State Department of Education, 2023)

Suggested Supplemental Resources

Suggested Lesson Ideas:

• Renting vs Owning, an extended lesson from the K20 Center at the University of Oklahoma, asks students to examine the differences between homeownership and renting, focusing on the responsibilities and benefits of owning versus renting a home or apartment.

• Buying vs Renting is an EconEdLink lesson from the National Council for Economic Education, which analyzes the opportunity costs of different housing options. Students explore various criteria that determine best choices for housing. 

• Renting a Place to Live, a lesson from EconEdLink and the National Council for Economic Education, offers the opportunity for students to analyze the importance of considering all costs when searching for a place to live. 

Suggested Interactive Learning and Instructional Videos:

• Renting or Buying, What’s the Difference (1:30 minute videoclip) Investopedia

• Should You Rent or Buy a Home (10 minute video) Nate OBrien.com

• True Cost of Renting a Place (4 minute video) Bank of America

•  Owning vs Renting a Home (3:30 minute videoclip) Red Canoe Credit Union 

Evidence of Learning

• Assess students’ learning before and after instruction, using the sample PFL Standard 10 Pre/Post multiple-choice assessment, provided by the Oklahoma State Department of Education. 

• Measure students’ understanding of the costs and benefits of different housing options, using the Renting vs Buying a Home Anticipation Guide (Student Sample).

• Ask students to demonstrate their learning about housing options, using the Housing Alternatives formative assessment from OCEE. (Student Sample)

• Assess students' grasp of the differences in renting versus home ownership, using the Always Sometimes Never formative assessment. (Student Sample) 

• Evaluate students’ learning of the advantages and disadvantages of renting, using the Pro/Con formative assessment. (Student Sample)

Teacher References:

• Should I Rent or Buy: Pros & Cons of Both Scenarios from MoneyGeek.com

• Renting vs. Buying a Home: What's the Difference from Investopedia

• Renting vs. Buying A Home: Which Is Right For You from Bankrate

• Renting to Own from Investopedia

• To Rent or To Buy: More than a Money Decision from Investopedia

• Is Buying a Home Right for Me Bank of America