There’s an Increasing Preference for Renting. Now What?
It looks like spring has arrived. Well, maybe not the weather—but the spring home buying season is here. As housing affordability continues to be a concern for more and more potential homebuyers, rising interest rates and increasing home prices have many entering the home buying market this spring.
The demand appears to be driven, though, by lack of inventory.
According to some new polling research conducted by Freddie Mac, there is an increasing preference for renting. That’s not good for the real estate or mortgage markets. The polling found that despite growing economic confidence among renters, affordability remains the driving factor in renter behavior. Freddie found that a total of 67% of renters view renting as more affordable than owning a home—that includes 73% of Baby Boomers (ages 53-71). 67% of renters who say they will continue renting admit they will do so for financial reasons; that is up from 59% just two years ago.
What is most telling are the similar feelings about “affordability” many current homeowners may have. If around 70% of current homeowners have similar affordability concerns about moving up, or even down, that may have them content with their current situation. This attitude won’t do much to help with the inventory issues—which will further impact affordability and continue the misconception that renting is more affordable and makes the most sense.
So, what do we do in this situation? Educate and provide financing options to suit every need.
At Embrace, we now have access to an entire suite of educational tools that can be used to show how renting just doesn’t make sense long term. And more importantly, how listing and trading up can provide a long term benefit. In addition, we are about to deliver product options that are market differentiators—but right now, that’s somewhat of a secret. Between the educational tools and the product offerings, we can help make your job easier and put a bunch of people in homes this summer.