More Renters Say Renting Is A Good Choice For Them Right Now

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Renters say renting is a good choice for them

Renters are comfortable with continuing to rent with many believing renting will be more affordable or stay the same for them in the next 12 months, according to research from Freddie Mac.

The research says more renters say for right now, renting is a good choice for them.

Also, millennials are more likely to rent by choice, while Baby Boomers say they have no interest in owning, according to the research.

Freddie Mac commissioned the Harris Poll to survey more than 4,000 U.S. adults to get their perceptions about renting in the post financial crisis marketplace.

In large cities, urban renters are more likely to say renting is a good choice for them, but they admit they would like to own at some point.

Also good news for landlords is that there is an Increase in the number of tenants who don’t know when they will move, according to the research. Plus renters like where they live and don’t plan to move even if there is a rent increase.

Research highlights on renters

  • There’s a significant increase in the number of renters who don’t know when they will move.
  • Renters are feeling more confident about their financial situation across all generations, but demonstrate relatively little change in how they’re managing their debt.
  • This quarter saw an increase in the number of renters saying they want to stay in place because they like where they live, even though their rent has increased. For those whose rents have remained the same for the past two years, 29% say they will not move or adjust their lifestyle to cope with a potential rent increase.
  •  The majority of renters are expecting their rent will stay the same in the next 12 months while many are more uncertain about owning.
  •  Renting is increasingly becoming a good choice for now. Whether they can afford to buy a home or not, the number of renters reporting renting is a good choice for them increased over the past year.
  • More rent say they have no interest in owning. The expectation to purchase a home is lower than it’s ever been (41%), and more Baby Boomers now say they have no interest in owning.
  • Millennials are more likely to say renting is a good choice for now, and are also likely to say that they are going to stay renting. Four in ten Millennials renters indicate a move in the short-term is likely.
  • Millennials’ views on the affordability of renting today are not changing. However, many feel that buying a home will be less affordable for them in the future.
  • While home ownership is on the horizon for some, fewer younger renters say they are working towards it.
  • Although Millennials’ views on managing their debt did not change, they are feeling better about their finances.

More Renters Say Renting Is A Good Choice For Them Right Now

Methodology:

Harris Poll on behalf of Freddie Mac conducted an online survey within the United States via its QuickQuery product six different times between August 2014 and March 2017. The March 2017 survey was conducted in two waves between March 3 to March 6, 2016 among 4,283 adults (aged 18 and over), among which 1,282 were renters. The September 2016 survey was conducted in two waves between August 31 to September 6, 2016 among 4,105 adults (aged 18 and over), among which 1,362 were renters. The January 2016 survey was conducted in two waves between January 26 to February 1, 2016 among 4,063 adults (aged 18 and over), among which 1,527 were renters. The October 2015 survey was conducted between October 8-12, 2015 among 2,020 adults (aged 18 and over), among which 703 were renters. Respondents for this survey were selected from among those who have agreed to participate in our surveys. The data have been weighted to reflect the composition of the adult population. Because the sample is based on those who agreed to participate in the online panel, no estimates of theoretical sampling error can be calculated.

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