April 10, 2018
Younger Millennials and Baby Boomers increasingly are leaning toward renting rather than owning as an affordable solution to housing, based on survey findings of research released on April 4 by Freddie Mac Multifamily.
However, interestingly enough, both the Baby Boomers and the Millennials say they still want to live in single-family homes, according to the research, conducted on behalf of the federal agency by conducted on behalf of the agency by The Harris Poll.
Specifically, the agency’s latest Profile of Today’s Renter reveals that of those who expect to rent, 39% are looking for a single-family house; 27%, for a complex with more than 50 units; 12%, for a complex with fewer than 50 units; 11%, for a townhouse; and 7% for something else.
Over the past two years, younger Millennials and Baby Boomers have become less sure that they will purchase a home in the future—with the Millennials ages 21 to 27 decreasing in numbers of intended buyers from 51% in March 2015 to 31% in the “extremely likely” category; and the Boomers ages 53 to 71 seeing a definite, but smaller downturn, from 19% to 17% in the same segment.
Similarly, 67% of renters who will continue renting say they will do so for financial reasons—up from 59% just two years ago.
Indeed, overall, the survey found that, among those Baby Boomers who currently are renting, 50% do not anticipate buying a home in the future. Of those who believe they will not purchase property, 35% have no interest in owning and 15% believe they will never be able to afford it.
Research contact: Hellonyc@harrisinsights.com