Money Matters - Long-Term Renters

 Things are shaking up in the U.S. housing market. The running streak of 124 straight months of rising home prices has been put to rest by several straight months of declining home prices in the U.S.

But, with rent across the country remaining at an all-time high, it begs the question: What does the current economic and housing climate mean for renters? 

This report shows where Americans are staying locked in their leases and in a perpetual renting cycle. The top cities with the most long-term renters (people who moved in 22+ years ago) are:

1. New York (415,817 long-term renters)
2. Los Angeles (82,559 long-term renters)
3. Chicago (32,176 long-term renters)
4. San Francisco (25,803 long-term renters)
5. Philadelphia (14,511 long-term renters)

Why aren’t people buying? It varies person to person, but our nationwide survey found 71% of renters want to buy a home and the top deterrents include money, interest rates, and debt.

I had a chance to learn more in this interview.

Why do renters tend to stay in a city long-term?

 

There can be many reasons why a renter stays in a city for a long time including finances, location, career, or personal life. However, our survey found the majority of renters (71%) want to buy a home, but 90% say money is holding them back. Our survey also found other reasons behind why people choose to rent include interest rates, not wanting debt, and simply not wanting the responsibilities of owning.

 

What factors contribute to renters being unable to buy a home, even if they want to?

 

71% of renters say they want to buy a home. For 9 out of 10, money is what’s holding them back. Additionally, more than 1 in 3 (35%) say interest rates are contributing to their decision not to buy. When asked when they think they will buy a home, 30% of renters said in the next 5 years. For 1 in 10, it’s a long-term goal as they don’t plan on doing so for 10 or more years.

 

How can renters move towards home ownership?

 

There are many steps people can take while on the path to becoming homeowners. Since we know finances are the number one thing holding renters back from taking that step, it’s important to start saving. Being mindful of your expenses and figuring out your budget are two important things renters can do now to move them closer to becoming homeowners.