Currently renters value homeownership, and some even plan on buying within the next year, however affordability issues are still creating obstacles, according to the California Association of Realtors 2016 Renter Survey.
About 48% of renters plan on buying a home at some point in the future, and 10% plan on buying one in the next year, according to the report. Those not planning to buy, however, stated that an improvement in finances, lower housing prices or saving enough for a down payment could change their mind.
Although 28% of renters reported that they don’t plan to buy at any point in the future, 50% of those stated that it was because they couldn’t afford it, 19% said they can’t qualify for a mortgage and 15% don’t have the down payment.
This chart shows the decreasing inventory in the Bay Area:
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In fact, only 20% of those who don’t plan on buying stated that it was because they preferred renting. Other reasons respondents reported for now wanting to buy were job uncertainty at 9%, economic uncertainty at 12% and housing market uncertainty at 6%.
Half of renters rated homeownership as an eight or higher on a one-to-10 scale of importance. The average was 6.8. In addition, 95% of renters see advantages to homeownership including freedom to do what you want with your home, building equity and having permanence and stability.
About 40% of renters indicated they would like to purchase a home in the same county they currently reside in. Only 7% plan to move outside of California to buy a home.
This chart breaks down the reasons renters have for wanting to buy a home:
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