When individuals transition from renting to owning a home, which of the following best describes a key trade-off they face?

• A. They are exempt from all local zoning regulations and can modify their property without restrictions.
• B. They lose the ability to build equity but gain more flexibility to move frequently.
• C. They pay less in monthly housing costs and have no need to worry about property taxes.
• D. They gain more control over their living space but take on greater financial risk and responsibility for maintenance.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which involves comparing the economic trade-offs between renting and owning a home.
2. Step 2: Identify the key characteristics of renting, such as flexibility to move, lower responsibility for maintenance, and typically no property tax payments.
3. Step 3: Identify the key characteristics of owning a home, including building equity over time, gaining control over modifications, but also taking on financial risks like mortgage payments, property taxes, and maintenance costs.
4. Step 4: Analyze the trade-offs by weighing the benefits of control and equity accumulation against the increased financial risk and responsibility that come with ownership.
5. Step 5: Conclude that the best description of the trade-off is that homeowners gain more control over their living space but also face greater financial risk and responsibility for maintenance.