Advertisements
A new study by tenants and homeowners led by Freddie Mac shows that people are increasingly believing that home ownership is not possible for them, due to obstacles such as down payment, closing fees, student loan payments, and childcare. A file photo of a house is displayed

A new study of tenants and homeowners shows that people are increasingly believing that home ownership is not possible for them.

Advertisements

Lender Freddie Mac Freddie interviewed around 4,000 households to determine attitudes to housing and published the resulting & # 39;Profile of the current tenant and owner& # 39; on Wednesday.

Only 24 percent of the tenants surveyed said it & # 39; very likely & # 39; and 37 percent said it was & # 39; somewhat likely & # 39; was that they would someday own a house, a combined total lower than the last four years the study was conducted.

The findings also showed that an increasing number of people had to relocate in the last two years to pay mortgage and rent payments.

& # 39; The notion that there is a crisis around the affordability of homes is not new & # 39 ;, said Freddie Mac & # 39; s president and incoming chief executive David Brickman. & # 39; But this really brings it closer to home in terms of what people do about it. & # 39;

A new study by tenants and homeowners led by Freddie Mac shows that people are increasingly believing that home ownership is not possible for them, due to obstacles such as down payment, closing fees, student loan payments, and childcare. A file photo of a house is displayed

A new study by tenants and homeowners led by Freddie Mac shows that people are increasingly believing that home ownership is not possible for them, due to obstacles such as down payment, closing fees, student loan payments, and childcare. A file photo of a house is displayed

Only 24 percent of the tenants surveyed said it was & # 39; extremely likely & # 39; and 37 percent said it was & # 39; somewhat likely & # 39; was that they would someday own a house, a combined total lower than the last four years the study was conducted
Advertisements

Only 24 percent of the tenants surveyed said it was & # 39; extremely likely & # 39; and 37 percent said it was & # 39; somewhat likely & # 39; was that they would someday own a house, a combined total lower than the last four years the study was conducted

Only 24 percent of the tenants surveyed said it was & # 39; extremely likely & # 39; and 37 percent said it was & # 39; somewhat likely & # 39; was that they would someday own a house, a combined total lower than the last four years the study was conducted

The Freddie Mac study showed that 19 percent of the total of 1,199 renters surveyed said it was & # 39; not at all likely & # 39; was that they would someday own a house, and 21 percent said it wasn't very likely & # 39; used to be.

A higher percentage of this response came from very low-income and low-income tenants, categorized based on the methodology used by Pew Research Center based on 2016 American Community Survey (IPUMS) data covering the reach of the identify family income needed to qualify for average income status in 2016. dollars.

Even among those who felt they could afford to own a home, tenants reported that it was at this time to rent to remain the best choice for them.

In general, most surveyed owners (83 percent) considered ownership of a home more affordable than renting, but that number is lower than in previous years.

On the other hand, the study also found that 82 percent of tenants now consider renting to be more affordable than home ownership, which is 15 points higher from February 2018 and a historical record for the survey. That perspective was shared over generations.

In general, most surveyed owners (83 percent) considered ownership of a home to be more affordable than renting, but that number is lower than in previous years compared to previous years.
Advertisements

In general, most surveyed owners (83 percent) considered ownership of a home to be more affordable than renting, but that number is lower than in previous years compared to previous years.

In general, most surveyed owners (83 percent) considered ownership of a home to be more affordable than renting, but that number is lower than in previous years compared to previous years.

On the other hand, the study also found that 82 percent of tenants now consider renting to be more affordable than home ownership, which will increase by 15 points from February 2018 and will be the highest point ever for the survey

On the other hand, the study also found that 82 percent of tenants now consider renting to be more affordable than home ownership, which will increase by 15 points from February 2018 and will be the highest point ever for the survey

On the other hand, the study also found that 82 percent of tenants now consider renting to be more affordable than home ownership, which will increase by 15 points from February 2018 and will be the highest point ever for the survey

The perspective that renting is more affordable than home ownership has been shared by tenants from generation to generation

The perspective that renting is more affordable than home ownership has been shared by tenants from generation to generation

Advertisements

The perspective that renting is more affordable than home ownership has been shared by tenants from generation to generation

However, data from the study did not support that belief and showed more tenants than homeowners spending more than 30 percent of their income on housing costs.

According to the survey, 34 percent of tenants spend more than a third of their income on rent, while only 25 percent of homeowners spend so much on their mortgages.

The research also showed that baby boomer owners (born between 1946 and 1964, according to the Pew Research Center) tend to spend less on housing as a percentage of their income than renters of any generation.

Only 17 percent of boomer homeowners spend more than a third of their income on housing, compared with 41 percent of tenants who have sacrificed more than a third of the population for a place to live in general.

The Freddie Mac study showed that 19 percent of the total of 1,199 renters surveyed said it was & # 39; not at all likely & # 39; was that they would someday own a house, and 21 percent said it wasn't very likely & # 39; used to be. A higher percentage of this response came from tenants with a very low income and a low income, classified according to the methodology used by Pew Research Center
Advertisements

The Freddie Mac study showed that 19 percent of the total of 1,199 renters surveyed said it was & # 39; not at all likely & # 39; was that they would someday own a house, and 21 percent said it wasn't very likely & # 39; used to be. A higher percentage of this response came from tenants with a very low income and a low income, classified according to the methodology used by Pew Research Center

The Freddie Mac study showed that 19 percent of the total of 1,199 renters surveyed said it was & # 39; not at all likely & # 39; was that they would someday own a house, and 21 percent said it wasn't very likely & # 39; used to be. A higher percentage of this response came from tenants with a very low income and a low income, classified according to the methodology used by Pew Research Center

Even from those who felt they could afford to own a home, tenants reported that renting a home was still the best choice for them right now

Even from those who felt they could afford to own a home, tenants reported that renting a home was still the best choice for them right now

Even from those who felt they could afford to own a home, tenants reported that renting a home was still the best choice for them right now

However, data from the study did not support that belief and showed more tenants than homeowners spending more than 30 percent of their income on housing costs. According to the survey, 34 percent of tenants spend more than a third of their income on rent, while only 25 percent of homeowners spend so much on their mortgage

However, data from the study did not support that belief and showed more tenants than homeowners spending more than 30 percent of their income on housing costs. According to the survey, 34 percent of tenants spend more than a third of their income on rent, while only 25 percent of homeowners spend so much on their mortgage

Advertisements

However, data from the study did not support that belief and showed more tenants than homeowners spending more than 30 percent of their income on housing costs. According to the survey, 34 percent of tenants spend more than a third of their income on rent, while only 25 percent of homeowners spend so much on their mortgage

Over the generations, middle and low income tenants reported seeing a down payment and closing costs to be considered as & # 39; major obstacles & # 39; for ownership

Over the generations, middle and low income tenants reported seeing a down payment and closing costs to be considered as & # 39; major obstacles & # 39; for ownership

Over the generations, middle and low income tenants reported seeing a down payment and closing costs to be considered as & # 39; major obstacles & # 39; for ownership

Over generations, middle and low-income tenants reported that a down payment and closing costs came up as & # 39; major obstacles & # 39; to be considered for ownership.

More specifically, nearly nine out of ten (88 percent) low-income people said that having the money for a down payment and closing costs would be an obstacle to home ownership when considering buying a home.

Tenants with an average income (72 percent) also point to the same challenge. Of these groups, 62 percent of low-income households and 39 percent of middle-income tenants consider having these funds as a & # 39; big obstacle & # 39; for home ownership.

The impact of these costs is also shrill over generations of current tenants; 80 percent of the millennials (born between 1981 and 1996), 81 percent of Generation Xers (born between 1865 and 1980) and 71 percent of the baby boomers believe that there is not enough money for a down payment or for closing costs as a obstacle for one's own house. .

Moreover, the expectation that mortgage payments would be higher than rent payments is also valued as a major obstacle to ownership by 40 percent of tenants.

Other factors that influence housing decisions for younger Americans include student loans and the cost of childcare.

Other factors that influence housing decisions for younger Americans include student loans and childcare costs

Other factors that influence housing decisions for younger Americans include student loans and childcare costs

Advertisements

Other factors that influence housing decisions for younger Americans include student loans and childcare costs

More than half of the workers in the essential labor force, including teachers, nurses and law enforcement agencies, have made housing decisions in view of the repayment obligations of their student loans.

More than half of Americans (51 percent) have spent the last two years spending or changing homes to pay their monthly housing payments, including 62 percent of tenants and 47 percent of homeowners.

Among these tenants, more than half (55 percent) said they have reduced expenses for non-essential items, such as entertainment, while 42 percent have spent less on food, utilities and other essential items in the last two years.

Surprisingly, 44 percent of tenants who had difficulty paying for their home in the last two years reported having to move to pay rent, a 14-point jump compared to the August 2018 survey results.

Advertisements

Of homeowners who had to make changes to purchase housing, 52 percent spent less on non-essential items in the last two years to reduce costs, while 33 percent spent less on food, utilities and other supplies.

In addition, 35 percent of owners who had trouble paying their housing allowance reported having to move to a more affordable place to live in the last two years, a nine point increase since August.

Despite all this, more young millennials expect to buy the next three years than reported.

Those who plan to purchase afterwards take steps to be able to do so, such as saving for a down payment and closing costs.

Despite all this, more young millennials expect that they will buy the following than they have reported in the past

Despite all this, more young millennials expect that they will buy the following than they have reported in the past

Advertisements

Despite all this, more young millennials expect that they will buy the following than they have reported in the past

Those who plan to purchase afterwards take steps to be able to do so, such as saving for a down payment and closing costs

Those who plan to purchase afterwards take steps to be able to do so, such as saving for a down payment and closing costs

Those who plan to purchase afterwards take steps to be able to do so, such as saving for a down payment and closing costs

. (TagsToTranslate) Dailymail (t) news