【Freddie Mac】New Survey Shows Affordability Continues to Drive Purchase and Rental Decisions

A new Freddie Mac survey shows that affordability remains top of mind for those individuals looking to rent or purchase a home. In fact, Freddie Mac’s "Profile of Today’s Renter and Owner" shows vast majorities of both renters and homeowners believe their current living situation is the most affordable option. However, the survey illustrates that issues of affordability remain pervasive throughout these groups. In addition, the survey takes a look at the impact of the current interest rate environment on buying preferences, including a close look at the preferences of Baby Boomers in particular.

Key findings:

• An unprecedented number of renters (84%) believe renting is more affordable than owning, an all-time high for the survey and up 17 percentage points from February 2018.
• Regardless, affordability issues continue to affect renters more than owners, 42% of renters paid more than a third of their household income on rent compared to 24% of owners on their mortgage.
• Given low interest rates, 40% of renters plan to purchase a home and 46% of owners plan to renovate in the next several months.

Renters Perceive Renting as More Affordable

When it comes to renting, the survey finds that an unprecedented number of renters (84%) believe renting is more affordable than owning, an all-time high for the survey and up 17 percentage points from just two years ago in February 2018.

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