Affordable Housing, Reports and Publications

Survey Finds Young Renters More Pessimistic About Owning a Home

Fannie Mae

The May 2014 edition of Fannie Mae’s monthly national housing survey focuses on the attitudes of young renters and homeowners. The survey results indicate that while many young renters aspire to own, they indicated that financial constraints would prevent them from doing so. In particular, young renters indicated that accumulating resources for a down payment, insufficient credit scores, insufficient income and too much debt were the biggest obstacles they faced. Young owners were much more optimistic about their ability to obtain a mortgage again in the future.

The survey also found that 76% of young renters and 90% of young owners considered home ownership to be a more sensible housing choice for financial reasons. When asked if owning a home was more sensible for lifestyle related reasons, 59% of young renters indicated it would be compared to 86% of young owners.

The report suggests that access to better educational resources and tools may help young renters in planning and saving toward the purchase of a home. In addition, the report indicates that some renters may benefit from alternative paths to home ownership, such as lease-to-own arrangements.

Click here to access the report and its detailed findings. 


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