Most renters believe that it is the more affordable option, and don’t appear to be in a hurry to purchase a home, according to research conducted by Freddie Mac.
Seventy-eight percent of renters believe it is more affordable than homeownership, an 11 percent jump compared to when they were surveyed six months ago. A total of 66 percent of renters plan to continue renting for their next residence, also up 11 points from February.
The perception of better affordability spans multiple generations, with 75 percent of millennials, 70 percent of Generation Xers and 81 percent of baby boomers all believing renting is more affordable than owning.
While renters seem happy not owning a home, 66 percent of renters reported difficulty affording their rent at some point over the past two years, evidence that they may be dealing with rising home prices. Among homeowners, 43 percent had trouble making their mortgage payments over the last two years.
When it comes to affording rent, older millennials struggled the most, with 79 percent in the 28 to 37 age category reporting difficulty handling payments over the past two years.
Still, more than half (58 percent) of renters have no plans to buy a home at this time. According to Freddie Mac, over the last three years there has been a gradual increase in the number of renters not interested in making a purchase.