Sure, Renters Aspire to Own Homes-but See Renting as Better for Now
This is not a shocker.
Even though rents in many parts of the country are taking a bigger and bigger bite out of their paychecks, about 70% of renters say that leasing a home or apartment is still a hell of a lot more affordable than buying one, according to the survey. And more than half say they will continue to make monthly payments to their landlords over the next three years.
The survey of more than 4,000 adults, including 1,527 renters, was conducted from Jan. 26 through Feb. 1.
“While most renters still have favorable views toward homeownership and aspire to it, many choose to rent because they view it as more affordable and a better fit for their lifestyle right now,” says David Brickman, executive vice president of Freddie Mac Multifamily.
Older millennials (ages 25 to 34) are most likely to buy a home in the next three years, with 56% saying they plan to do so. They were followed by members of Generation X, at 49%; younger millennials (ages 18–24), at 44%; and baby boomers, at 31%.
For those who make the big move to shell out for a home in the next three years, the biggest roadblock is coming up with the cold hard moola for a down payment. That’s what 36% of respondents say, while 35% report that less-than-stellar credit is standing in their way. Not making enough money and having too much debt are also concerns.
About 37% of U.S. households, or 43 million, were renting in 2015, according to a Joint Center for Housing Studies of Harvard University report.
Nearly half of them—21.3 million—spent more than 30% of their earnings on housing in 2014. Meanwhile, 11.4 million had to divert more than half of their paychecks to rent each month.
Different generations have different reasons for preferring renting. Millennials like that renting allows them to stash more money in the bank while accommodating their lifestyles. Generation Xers and boomers say they don’t have to worry about the maintenance or responsibility of owning a home. Boomers also say renting is a better fit for their lifestyle.
And despite what can seem like a never-ending barrage of bank account–draining hikes, renters won’t be deterred.
“Almost half of all renters whose rent rose in the last two years say they like where they live and will stay regardless of rent increases,” Brickman said in a statement.
Source: realtor.com
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