About 67% of renters plan to continue renting for financial reasons and believe that renting is more affordable than buying. While this is an opinion survey, not a mathematical formula, there is likely some truth to it. House prices have gone up dramatically in recent years. Even if it would cost less over a longer period of time to purchase a house, the up-front costs, and potentially the mortgage payments, are larger. People are getting regular paychecks, but most of it is being spent, not saved. Renters would need to ignore their rent payments to save up enough to buy, which would instead simply lead to eviction and bad credit. In particular, the percent of millennials who will continue renting for financial reasons, many of whom have student debts, has increased from 59% to 74% over the past two years. Half of renting Baby Boomers believe they will never own a home.
What’s more, affordability concerns are actually affecting interest in homeownership. Homeownership is part of the American dream. For many renters, convenience and affordability are bigger concerns than achieving that dream just to say you did it. 6% more renters than last year are satisfied with their rental experience, and even in the face of rent increases, a full 15% more do not plan to move. These trends are not necessarily optimistic, though. Renting isn’t getting any cheaper; it’s becoming the best available option for many people, not an ideal.