A New Study released last month by Fannie Mae found that one-third of Americans would be more likely to rent their next home than buy, up from 30 percent in January 2010. Fifty-nine percent of renters said they would continue to rent in their next move, up from 54 percent in January 2010.
The study, based on telephone surveys of 2,041 members of the U.S. general population (plus 1,566 additional respondents from “geographic areas of interest”), revealed that smaller households and financial caution are contributing factors to an increased willingness to rent. Fifty-seven percent of renters believe financial benefits are the best reason to rent. Since the housing crisis began, the homeownership rate has declined 11 percent for 25-to-29-year olds.
“The data in the analysis aligns with what we’re seeing in the market,” says Ken Bacon, Executive Vice President of Fannie Mae’s Multifamily Mortgage Business. “More Americans are viewing rental housing as an attractive and sustainable housing option.”
Source: Fannie Mae, Dec. 9, 2010