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Pandemic steals homeownership dreams for 43% of renters
RENTCafé recently surveyed 7,000 renters to find out about their housing plans before and after the coronavirus hit. For those who wanted to take the leap from renting to buying this year, their hopeful plans are quickly changing.
The American Dream locked in quarantine: 1 in 10 renters were ready to buy a home this year, but the pandemic forced 43% of renters to delay their homeownership plans. Moreover, a significant share of renters now thinks they’ll NEVER be homeowners.
• Things were finally looking up for Gen X and Older Millennial renters, of whom 15% and 14%, respectively, were confident they’d become homeowners by the end of the year.
• As 43% of would-be home buyers changed their plans due to the pandemic, “economic uncertainty” and “loss of income” were the most cited reasons for delaying homeownership.
• As many as 50% of Older Millennials were forced by the crisis to let go of their dream, followed by Younger Millennials (43%) and Gen X-ers (42%).
• Considering the current market conditions, we asked renters about when they would finally be able to buy a home: while 56% were optimistic about becoming owners in the next 5 years, a significant 23% said that they’re never buying.
• Millennials were most eager to buy a home soon, particularly the older cohort, with 68% of Older Millennials planning to become homeowners in the next 5 years. Long-considered renters-at-heart, this cohort is now set on making the transition.
• On the other side, half of Baby Boomer renters expressed no intention of ever buying again, as they seem to be getting more and more comfortable with renting.