The number of renters who believe renting is more affordable than owning has hit an all-time high – but affordability concerns remain pervasive among those who rent
A record number of renters believe that renting is more affordable than owning a home, according to a new study by Freddie Mac.
Eighty-four percent of renters surveyed believed that renting was more affordable than owning, an all-time survey high and up 17 percentage points year over year. However, while the vast majority of renters believe that renting is the more affordable option, affordability issues are pervasive among renters, Freddie Mac said.
“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 Freddie Mac CEO David Brickman. “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.”
A majority of renters (62%) said they were satisfied with their rental experience. However, while most renters continue to believe that renting is more affordable than owning, the study found that 42% of renters were paying more than a third of their income for rent, up eight points from April of 2019. Only 24% of owners pay more than a third of their income for housing. Sixty-seven percent of renters have made changes in their spending or even moved to afford their monthly housing payment, up five points from April, and half of all renters said they found it difficult to find affordable housing close to work.
However, it seems that renters are becoming more convinced that continuing to rent is the right choice for them. Eighteen percent of renters surveyed said they weren’t ever interested in purchasing a home, up four points from August of 2017.
