Nearly three quarters of renters think that renting is a more affordable choice than homeownership, even though, according to the facts, it’s more affordable to buy, a survey from Freddie Mac reported.
The survey found that 70% of renters currently feel renting is a more affordable choice than homeownership and 55% plan to keep renting in the next three years.
The quarterly online survey of renters was conducted in January and February 2016.
And this view doesn’t change across generations, with 70% of Millennials, 61% of Gen Xers and 73% of Baby Boomers thinking that renting is a more affordable choice for them.
"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."
The survey also found that 46% say renting is a good choice for them now regardless of whether they plan to buy or believe they will be able to afford to do so.
The percent is even higher among Millennials, with 54% saying renting is a good choice for now.
Here’s what financial hurdles renters who plan to buy in the next three years still indicate they have to overcome:
- Affording a down payment (36%)
- Not a good enough credit history (35%)
- Not making enough money (30%)
- Carrying too much debt (23%)
However, 52% of single-family home renters say that they plan to purchase a home in the next three years, compared to 36% of apartment renters.