A record number of Americans would prefer to continue renting than to buy a house.
Fannie Mae’s October 2024 National Housing Survey reveals that only 20% of Americans feel it’s a “good time” to buy a home, even if overall housing market sentiment has improved over the past two years.
Some may be waiting out the market. A net 16% expect mortgage rates to fall in the next 12 months.
But at the same time, there may also be a long-term shift in preferences. A substantial 36% of respondents said they’d choose to rent rather than buy if they were to move – a 10-point jump from 2021 and the highest level since recording began in 2010.
“One effect of the prolonged period of relatively high home prices of the past four years is that we are seeing a slowly growing preference to rent rather than buy on consumers’ next move,” said Fannie Mae Chief Economist Mark Palim.
Even if home prices begin to cool, they remain out of reach for many would-be buyers. Faced with skyrocketing property taxes, homeowners’ insurance and mortgage rates, more consumers are finding more value in the rental market.
This trend is promising for property managers. As renting becomes an increasingly attractive option, they can expect demand for their rental properties to stay strong, and tenants to stay for longer.
More renter behavior headlines
Almost one-quarter of adults base living decisions on politics – Multifamily Dive
Data shows disconnect between Americans' perceived financial strain and reality – Axios
Should renters be allowed to renovate? Millennials think so. – PayProp blog
