Record number of renters believe renting is more affordable than owning

A recent report from CoreLogic showed that home prices increased 4% year over year in December, and projected the U.S. price index will rise by 5.2% by December 2020.
As home prices continue to rise nationally, it’s little wonder that Freddie Mac’s latest “Profile of Today’s Renter and Owner” found that the majority of current renters believe renting is more affordable than owning.
However, the percentage of renters who hold that belief has increased dramatically in the past year.
A whopping 84% of renters said they believe renting is more affordable than owning – an all-time high for the survey. For comparison, this number is up 17 percentage points from February 2018.
The survey also found that affordability issues affect the average renter more than a homeowner. Freddie Mac said there are 42% of renters who paid more than a third of their household income on rent.
This is compared to only 24% of homeowners who spend that amount on mortgage payments.
But there is good news for renters looking to own. Given current low interest rates, 40% of renters said they plan to purchase a home.
“The housing market is strong and, based on our survey, the low mortgage rate environment may inspire both renters and owners to make an educated move this spring,” said David Brickman, Freddie Mac CEO. “While Baby Boomers tend to be satisfied with their current housing situation, younger generations are still struggling to determine whether to rent or purchase a home, largely due to lack of supply and affordability constraints.”
And that lack of supply stretches beyond single-family housing. Last year saw record-high occupancy rates in multifamily housing with a shortage of supply. Naturally, this drove rent growth. Many of the renters surveyed by Freddie Mac voiced their worry in this area.
Almost 70% of renters said they are growing more concerned about their rent going up in the next 12 months, while 68% are concerned about not being able to afford their larger expenses. Even so, according to the majority surveyed, renting is still the more affordable option.

Comments

Post a Comment

Popular posts from this blog

34 Trends That Will Define Home Design In 2020

Image
Kitchens 1. Three-tone kitchens.  Two-tone kitchen cabinets — meaning the upper cabinets are one color and the lower cabinets another color, or the perimeter cabinets are one color and the island is a different color — dominated kitchens in the past couple of years. So it’s only natural that designers are building on the trend rather than doing away with it. In a three-tone kitchen, one more color or material is introduced to create an asymmetry in the palette that helps define zones or functions and keeps the eye moving. Here, designer Janina Cabrera of  J Style at Home  designed a gorgeous kitchen with white perimeter cabinets, a light wood island base and a knockout powder-blue hutch. In this kitchen by  Hutker Architects , a deep navy defines the refrigerator and pantry wall to the left, joining white perimeter cabinets and a superlight wood island base. Wood via the beams, ceiling, shelves and flooring adds to the diverse three-tone palette. Designer
Read more

How to Help a Senior Loved One Downsize

By Michael Longsdon Downsizing is becoming an increasingly appealing option for older adults everywhere. According to Senior Lifestyle, 40 percent of Americans between the ages of 50 and 64 intend to move in the next five years. Among these, downsizers outnumber upsizers 3 to 1. It’s easy to see what makes downsizing so appealing. It allows seniors to simplify and streamline their life, getting rid of the things they don’t need so they can focus on the things that matter to them. However, this doesn’t mean that it isn’t an emotionally fraught and logistically complex undertaking. If you have a senior loved one who is planning to downsize, here are a few ways you can make the whole process easier on them. Visit Prospective Homes With Them House hunting can be overwhelming, so volunteer to tag along as your loved one looks for their new home. The purpose of this is twofold: it allows you to offer moral support but also to look for elements that make for a safe and appr
Read more

6 Must-Have Kitchen Design Features

Image
1. The Right Storage Your kitchen cabinets make up the bulk of what you see in your kitchen, so your  choice of cabinet color and style is a major, consequential decision. But the components inside your cabinets are equally important, if not more. Your storage solutions determine how functional your kitchen is. When you’re at the peak of cooking a large meal, you care less about the look of your cabinets and more about the ease of grabbing the right tools, spices, pots and other supplies. A kitchen designer will often take an inventory of all the utensils, dishes, small appliances and pantry items in your kitchen to figure out the right storage components for you. P ullouts, rollouts and swing-outs will efficiently organize your stuff and make things easier to find and grab. “When budget allows, we always, always recommend drawers  or pullout shelves  on the lower cabinet level,” designer Lisa Janzen of  KC Interior Design  says. “There is nothing worse than having to get on your hands
Read more