Affordable Housing, Community Development, Reports and Publications

Fannie Mae Releases Analysis of Consumer Choice to Own or Rent


Fannie Mae Economic and Strategic Research Group has released a research brief “What Drives Consumers’ Intentions to Own or Rent.” This brief evaluates the motives behind the choice of consumers to own or rent.

The analysis produced a few key findings:

  • Demographics (income, age, marital status, employment status, etc) were found to be the primary drivers for current homeownership status and the intention to own or rent for outright-owners (those who have paid off their mortgage or own property outright).
  • When deciding where to move to next, housing and financial attitudes are the primary drivers of the intention to own or rent for renters and mortgage owners.
  • Exposure to default, perceived home value appreciation/depreciation and self reported underwater status had a minimal impact on the models that predicted individual’s intentions to own a home for their next move.
  • Stage in life is an indicator of whether one is a renter or owner as the move from renting to having a mortgage to owning outright progresses as one gets older.

Overall, the analysis still shows that individuals have an overwhelming desire to own a home despite the current economic conditions.

Click here for the full analysis.  



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