Last week Fannie Mae released a study that read like an investment property or duplex owners Christmas list.
The survey reads not only like a forecast of the rental market in the months and years to come, but also paints a pretty clear picture of who present and future tenants are likely to be.
According to Fannie Mae’s National Housing Survey in the third quarter:
- -33 percent of all Americans would be more likely to rent their next home than buy. That represents a three percent increase over January.
- – Among renters, 59 percent said the next time they move, they are more likely to continue to rent. This figure is up 5 percent since January.
- – While most people choose to buy a home because of lifestyle considerations, most elect to rent due to financial considerations. With nearly 10 percent unemployment and a flagging economy, this should bode well for the rental market.
- – 57 percent of renters believe the best reason for renting is the financial benefits.
- – Based solely on present household financial condistions, 52 percent of today’s tenants believe they are better off renting.
- – Fannie Mae estimates 64 percent of renters who do not plan to own a home and 50 percent of those who do plan to own a home one day do not have sufficient income to qualify for a mortgage on a median-priced home.
- – Single people are least likely to own.
- – The financial and housing crisis has caused home ownership to decline 11 percent for those between the ages of 25 and 29. Homeownership among people over age 35 has declined 5 percent.
- – Married couples, who are statistically most likely to own homes, represent a declining portion of the population.
- – 58 percent of single mothers rent.
Ken Bacon, Executive Vice President of Fannie Mae’s Multifamily Mortgage Business added, “More Americans are viewing rental housing as an attractive and sustainable housing option. As a result, we remain focused on helping America’s working families- many of whom have incomes at or below the median in their communities – live in quality, sustainable, affordable rental housing.”
For a full copy of the report, click here.