For years, homeowner ship has been a huge part of the American dream. In fact, generations of Americans have worked tirelessly to build and purchase homes for their families. However, changes in the real estate market have put owning a home out of reach for many people, and lots of people who once owned their own homes are no longer in a position to afford a mortgage. As a result, the number of people choosing to rent has increased over the last several years, and while many assumed that this trend would be temporary, a recent study suggests that many renters plan to stay that way. The study, which was conducted by Harris Poll for Freddie Mac, asked renters to rank their priorities and surprisingly, saving for a down payment on a house was not at the top of many people’s lists. In fact, the results showed that only 39% of the people polled consider saving for a down payment to be high on their list of priorities.
According to David Brickman, Freddie Mac’s executive vice president, “We know rents are rising faster than incomes, and now we have data to show that many renters don’t have enough to pay all their debts each month, which is forcing them to make tradeoffs, such as cutting spending on other items,” and apparently, for many, putting off becoming a home owner is one of those trade offs. The survey also revealed that people renting single family homes are more likely to consider purchasing than those renting multi-family/apartment units. However, the desire for ownership among those renting single family units stems from dissatisfaction with renting while those renting multi-family/apartment units seem to be more satisfied.
Although the economy has been steadily improving, it looks like many people’s outlooks on how they spend their money are changing drastically. While only time will tell how these changes will permanently impact the real estate market, it looks like the American dream is undergoing yet another transformation.
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