Fewer Americans care about living the dream of homeownership, according to a recent survey from Freddie Mac.
American renters are not only feeling more optimistic about their finances, but also they’re less likely to be interested in owning their own home, according to the survey.
The number of renters who say that renting is a good choice for them now rose from 46 percent in January 2016 to 52 percent in March.
Renters’ sentiments about their financial situation have improved since the last time Freddie Mac asked the question in 2016: 41 percent of renters say they have enough money to last beyond payday, up from 34 percent in September. Those who say they cannot afford essential living expenses has declined from 20 percent in September to 14 percent in March. Overall, financial confidence among renters increased regardless of age group or geography.
Yet that growing financial confidence is not leading to more home ownership, according to the survey. The number of renters planning to move within the next two years decreased from 38 percent in September 2016 to 33 percent in March, while the number of renters who say they like where they live and don’t plan to move, even if their rents rise, increased.
Renting is increasing in popularity among those who plan to move to a new home or apartment. The percentage of renters who say they plan to rent their next home rose from 55 percent to 59 percent, with the largest increase among millennials aged 18 to 34. Seventy-three percent of them plan to rent their next home, up 64 percent.
A preference for urban living was prevalent among all the renters, with 75 percent saying that they would consider downsizing in order to live within an urban area.
The Freddie Mac study, conducted by Harris Poll, surveyed 4,283 U.S. adults in March.