What Do You Think is More Affordable?
If you've struggled to pay your rent recently, know that you're not alone. New research by Freddie Mac Multifamily reveals that a majority of renters – 66 percent – reported difficulty affording their rent at some point over the past two years. Even if you're feeling the squeeze of rising rents, you're also not likely to be looking to buy a home, as a whopping 78 percent of renters in our survey believe renting is more affordable than owning. That's up 11 percent from our last survey, conducted just six month ago.
Increased perceptions of affordability in renting versus owning was seen across all generations, but was more noticeable among Millennials (up 14 percent) – those that are expected to boost the housing market by becoming first-time homebuyers but are increasingly looking to stay put in rentals based on their pocketbook.
And if you're planning on staying put with your rental rather than buying, you're part of a growing trend. Over the last three years there has been a gradual increase in the number of renters who are not interested in buying, with 23 percent of renters reporting they have no interest in buying – up from 20 percent in February. Part of that has to do with affordability, but a consistent number of renters – 63 percent – continue to express their satisfaction with their rental experience. In fact, 58 percent of renters believe that renting is a good choice for them now, and do not have plans to buy a home at this time – up from 54 percent in February.
If you're a renter, are you happy with your situation or looking to take the plunge into homeownership? Learn more about what your fellow renters think in our "Profile of Today's Renter."