24% of tenured renters “seriously considered buying” before renting their home
A significant finding is that 24% of these tenured renters "seriously considered buying" before opting to rent. The primary reasons for choosing to rent instead of buying include affordability issues, with 76% citing an inability to afford a home purchase. Additionally, 69% felt it was not an opportune time to buy due to market conditions, and 62% could not find a home that met their criteria in terms of size, location, or floor plan.
Despite these challenges, a majority of renters, 65%, express a desire to own a home, while 34% prefer renting. The aspiration to own is particularly strong among Millennials, with 85% indicating that purchasing a home in the next three years is important to them. This demographic also shows a high propensity to move, with 77% planning to relocate within the same timeframe.
For those planning to move, 66% intend to buy their next home, while 31% plan to continue renting. Among those who plan to rent, affordability remains a critical factor, with 88% stating they cannot afford to buy. Other reasons include not wanting the responsibility of home maintenance (53%) and not planning to stay long-term (39%).
The financial barriers to homeownership are further explored, revealing that 89% of renters who cannot afford to buy cite the downpayment as a major hurdle. Additionally, 68% cannot afford monthly mortgage payments, and 65% are concerned about maintenance costs. Market conditions also play a role, with 94% of those who believe it is not a good time to buy citing high housing prices, and 88% pointing to high mortgage rates.
The data for this analysis comes from the 2023 ZG Population Science Mortgages and Moving Survey, which included 1,011 renters aged 18 and older. The survey aimed to achieve national representativeness by using quotas and weighting the sample to reflect the U.S. population based on various demographic factors.
