Renters, while waiting to become more financially stable before buying, are optimistic about owning a home in the future, Fannie Mae found after conducting the National Housing Survey. The May 2013 survey accounts for more than 1,000 homeowners and renters, and assesses consumer confidence, household finances and attitudes regarding the housing market.
Renters between the ages of 18 and 34 are particularly interested in preparing themselves financially in anticipation of their pursuit of homeownership. They were nearly twice as likely to state this as their reason for renting, in comparison with renters more than 35 years of age, according to the National Housing Survey.
"The strength of the economy, particularly job creation and real income growth, as well as the favorability of credit conditions should play significant roles in determining if and when many of these renters will see the fruit of their efforts to become homeowners," stated Sarah Shahdad, economic analyst at Fannie Mae.
This is in addition to the MacArthur Foundation study that examined similar topics through March. Nearly 1,500 potential homeowners were surveyed between February and March, and 72 percent of respondents who currently rent noted that they hoped to buy a home in the future. A majority of 80 percent of respondents said that they felt stable in their current housing situation, despite the 45 percent that expressed a time in their lives when their housing situation was not stable.
Findings in the Fannie Mae survey, which looked specifically at statistics gathered last month, showed that renters, even those who remarked on a favorable renting experience, expect to purchase a home in the future at a rate of 90 percent. Though many respondents were unsure of how easily they would be able to obtain a mortgage, they expressed a sense of optimism about their future status as homeowners.
Consumer, renter optimism on the rise
This precursor to an increase in homebuyers is amidst a rise in overall optimism in regards to the housing market. Fannie Mae found an uptick of respondents who thought it would be a good time to purchase a home of 5 percent in the property data National Housing Survey, reaching 76 percent as compared to the 72 percent of May 2012. Americans who currently feel that it would be easy for them to obtain a mortgage reached a level of 46 percent.