More than three-quarters (76 percent) of renters believe it is more affordable to rent than own, a new survey by Freddie Mac revealed.
That number is rising as only 68 percent thought renting was more affordable last March. Further, 55 percent said renting is “a strategic choice that makes sense at many life stages” and not just for young or mobile adults.
“These survey results suggest that attitudes toward renting and home ownership may be shifting,” Curt Long, vice president of research and chief economist at the National Association of Federally Insured Credit Unions, said. “It’s possible that sustained levels of above-trend home price growth are starting to dampen desire for homeownership.”
While most renters believe it is more affordable to continue renting than to buy a house, 56 percent said rental prices have increased over the past year. In addition, 63 percent of renters said the amount of available rental options is the same or lower than last year. In contrast, only about half of renters said the same about available homes to purchase.
The survey also found that 60 percent of renters are satisfied with their rental experience, while 41 percent said it is difficult to find affordable housing near their workplaces. Also, 75 percent said they would be willing to live in a smaller property to have a shorter commute. Millennials were much more likely than Gen Xers or Baby Boomers to indicate a willingness to downsize.