A new study shows more people will be renting for a longer period of time due to the economic downturn. “The reason why most renters don’t plan on becoming homeowners in the near future is financial worry,” Florentina Sarac of Rent Café tells GlobeSt.com. “With home prices already high, they assume that the current pandemic won’t have a positive effect on the housing market – on the contrary. Despite a desire to own a home, renters are shying away from doing so as they not only can’t find a home priced within their budget, but they also have to take into consideration the unpredictability of current events.”
According to a new study from Yardi’s Rent Cafe, due to the pandemic’s economic impact, over 40% of renters feel they will be putting off purchasing a home for at least 5 years, if not longer. With 23% of those respondents stated homeownership would never be within reach.
“It all depends on how long this pandemic is going to last, but it would be safe to say that the housing market is bound to be affected by this, one way or another,” says Sarac. “Given the uncertain times we’re going through, most renters might be extra cautious when it comes to taking big decisions such as buying a house.”
“While more and more Boomers are shifting towards renting given the flexibility and affordability that comes with it, younger generations like millennials are finally starting to give homeownership a chance as they begin to settle down and start families,” says Sarac. “Gen Z-ers, on the other hand, are still too young to have the necessary financial stability to become homeowners although they are enthusiastic about it. The influence, however, might come from their gen-X parents, who have been through several economic crisis resulting in many of them wanting and failing to become homeowners in 2008 and now we’re witnessing a replay of that due to coronavirus. As a result, 25% of them are no longer hopeful about becoming homeowners.”
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