Conventional wisdom has held that renters rent because they can’t afford to buy, but the latest census results are showing that this is not the case among the majority of renters today. In fact, the single-most prominent indicator that renters will more than likely remain renters in 2016 is their satisfaction in their housing situation. We key in on specific data from the latest research, identifying which factors lead renters to either remain renting or to break out and buy.
Turnkey property companies have been following renter stats all year, looking for factors that explain why it is that the large majority renters are satisfied to remain renters. The Mortgage News Daily published a piece with stats from a Freddie Mac commissioned survey run by Harris Poll. In the poll, more than 2,000 U.S. adults were questioned about their perceptions on renting. These results represent perception from June 19-23 of 2015. Of the 2,000 surveyed, 727 were renters.
Here is a quick summary of those results:
- 55% of renters have no plan to buy in the next three years
- 15 million households rent a single-family home (US Census data)
- 25 million households rent an apartment (US Census data)
- Less than 1/3 of those surveyed were dissatisfied with their rental experience
- 67% apartment dwellers satisfied with renting
- 60% single-family home dwellers satisfied with renting
- 68% of renters are more likely to rent than purchase a home
- 32% of current renters are looking to purchase a home
Why is it that so many renters are satisfied to continue renting? The Harris Poll captured three primary views over the course of three periods (August 2014, March 2015 and June 2015) on renting and why it was the right choice for them.
- Provides freedom from home maintenance responsibilities
- Allows more flexibility over where you live
- Provides protection over home price declines
The graph below indicates the change across all three periods.
Check out more Census and poll data by reading the full article here.
The number of U.S. renter households is up in 2015 according to the U.S. Census Bureau, and this is going on the 10th consecutive year of high numbers of renter households. What’s more, the numbers are expected to continue climbing as the economy improves.
This presents a unique opportunity for investors interested in getting involved in turnkey property investment. With the rental market hot, investing in rental properties grows not only more secure but with it, projected ROI.
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