According to a recent survey by TD Bank, 50% of American people who are currently renters plan to buy homes in the next two years. Many say they have even started making financial strides towards making this move, like saving for a downpayment. The findings also revealed that the main motivating factor for buying is rising rent prices.
The TD Banker Survey asked 1,000 American individuals who are currently renting apartments or homes. The poll asked how they feel about homeownership, what concerns are keeping them out of the housing market, and what factors may motivate them to purchase a home.
Some respondents said when rent rises over $1,100 per month, they will contemplate buying home. Currently, their average rent is getting close to $1,000. In the last two years, average rents increased by nearly $300 per month.
“Rising rents are motivating Americans to purchase a home,” said Scott Haymore of Pricing and Secondary Markets. “With an improving job market and economy, renters are gaining more confidence in the housing market and starting to explore homeownership as a feasible option.”
51% of respondents do not feel financially secure enough to buy a home right now. Close to half are also worried about costs like mortgages.
However, 59% of renters said it’s extremely or very important to own a home. 76% of Millennial renters place even higher importance on homeownership, rate homeownership as extremely or very important to them.
“We can see from our data that rents are rising, and while many renters feel that saving for a home is out of reach, there are other options they should consider,” said Haymore. “Today, potential buyers can take advantage of state and government affordability programs, which offer options outside the traditional 20 percent downpayment. This enables them to pursue homeownership, build equity and still feel comfortable with their monthly payments.”
Here at RE/MAX Paradise, we offer rental homes all over Miami. Are you ready to buy a home instead? We have many great properties available to purchase today!