Renters today are feeling more positive about their finances and have a favorable view of renting, so much so that they plan to stay put even if rates climb, according to a new Freddie Mac report. Survey respondents also are willing to trade home size for an urban location.
Still, their plans for buying a home aren’t growing. The number of renters who expect to rent their next home reached 59%, up from 55% last September. Renters who expect to own declined from 45% to 41% during the period. Meanwhile, the number working toward homeownership decreased from 21% to 15%.
The increase in favorable financial views was consistent across all age groups and regions. Confidence rose from 27% to 46% for rural renters since September, and from 38% to 48% for baby boomers during that period.
With recent trends in the housing market, the results of the Freddie Mac survey are perhaps not surprising. The economy is improving, yet the barriers to entry for first-time buyers, including high prices, low inventory and tight lending, remain high.
A recent survey by the National Association of Realtors found declining confidence among renters during the first quarter of 2017: 56% said it was a good time to buy, compared to 62% the year before. This compares to 80% of current homeowners who said the time is right to buy a new home, down slightly from 82% a year ago.
Average rental prices are on the upswing overall, increasing $85 from January to December 2016, according to rental listing website ABODO.
For millennial renters staying put, apartment developers are upping their amenities game, with everything from fireplaces and game rooms to yoga studios and package storage.
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