Do Renters Really Want to Buy a House?
The popular notion that renters are itching to jettison their landlord and embrace a mortgage has been shot down by a new Freddie Mac survey that found 70 percent of renters currently believe they are enjoying a more affordable choice than homeownership and 55 percent planning to keep renting in the next three years.
On a generational level, 70 percent of Millennials, 61 percent of Gen Xers and 73 percent of Baby Boomers identified renting as the more affordable choice for them. Among these groups, most Millennials believed renting allows them to save money (42 percent), while a freedom from home maintenance was the primary benefit for Gen Xers (28 percent) and Baby Boomers (41 percent).
As for the survey respondents planning to buy a home in the next three years, the most common obstacles on the road to homeownership was affording a down payment (36 percent), maintaining a good credit history (35 percent), not making enough money (30 percent) and carrying too much debt (23 percent).
"Renting is becoming a popular choice among many age groups," said David Brickman, executive vice president of Freddie Mac Multifamily. "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."