A new Freddie Mac survey finds that only 24% of renters polled said it was “extremely likely” that they would ever own a home, down 11 percentage points from four years ago.
The survey also found that 82% of renters said renting was more affordable than buying, up 15 percentage points from February 2018.
Meanwhile, rising rents are creating hardships: 44% of renters who moved within the last two years said that they did so because they could no longer afford their rent.
“The notion that there’s a housing affordability crisis is not new,” says incoming Freddie Mac CEO David Brickman. “But this is really bringing it closer to home in terms of what people are doing about it.”
According to the survey, saving for a downpayment and closing costs were the two biggest obstacles preventing renters from buying – a crunch felt by 80% of millennials and Gen Xers and 71% of baby boomers who rent.
In addition, 51% of renters between the ages of 23 and 29 said they made different housing choices than they otherwise would have because of student loans; and a significant number of homeowners and renters said child-care costs were a main factor in their housing decisions.
Source: Wall Street Journal (06/27/19) Parker, Will; Kusisto, Laura
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