Rising Rents Not Motivating Consumers to Buy Homes, Research Shows

first_img About Author: Xhevrije West Rising Rents Not Motivating Consumers to Buy Homes, Research Shows The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago New Freddie Mac research reveals that despite rising rents, the majority of renters are not motivated to purchase a home and positive perceptions about renting are increasing. Harris Poll was selected by Freddie Mac to conduct the survey of more than 2,000 U.S. adults online in March 2015 to get their renting viewpoints.”We’ve found that rising rents do not appear to be playing a significant role in motivating renters to buy a home,” said David Brickman, EVP of Freddie Mac Multifamily. “This contradicts what some in the housing market think as they expect more renters ought to be actively looking to purchase a home. We believe rising rents are primarily a sign of increased demand rather than a signal that home purchases will be increasing.”According to the U.S. Census Bureau, more than one-third of U.S. households are renting homes, and renters make up all net household growth over the last several years.This year, rents are expected to rise 3.4 percent above inflation, a slight decrease from last years’ number of 3.6, according to the research. Only six percent of renters who have lived in their home longer than two years have experienced a decrease in their rent amount, while 38 percent of renters experienced an increase in their rent amount in the last two years.Of the renters who experienced an increase in rent, 70 percent noted that they want to buy a home but cannot afford it right now, the data found. Fifty-one percent said that they would have to put off their plans to buy a home for now. Another 44 percent said that they would like to buy and are looking for a home to purchase.”Growth in the number of renter households is occurring amid an improving job market and economy,” Brickman said. “The demand for rental housing is increasing and an estimated 440,000 new apartment units are needed each year to keep up with demand.”A third of renters indicated in the survey that they are very satisfied with their rental experience and 30 percent say they are moderately satisfied. The main reasons selected for those that are satisfied with their renting experience are freedom from home maintenance, more flexibility over where you live, and protection against declines in home prices. These choices were the same in the last survey, with the numbers rising slightly. In spite of rent increases, 53 percent say they will not adjust their spending habits and 46 percent say they like where they live and will stay in their current place.Click here to go to Freddie Mac’s research page for additional information. Freddie Mac Homeownership Rising Rents 2015-05-18 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Freddie Mac Homeownership Rising Rents Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago May 18, 2015 994 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Rising Rents Not Motivating Consumers to Buy Homes, Research Shows Subscribe Previous: VRM Mortgage Services Honored by DiversityBusiness For Second Straight Year Next: White Paper Authors Warn of the Cost of Reprivatizing GSEslast_img read more