More people are beginning to gravitate away from renting, instead opting for the increasingly more affordable home ownership route. With potential changes coming for lending regulation, as well as a recent dip in mortgage rates, it may be financially safer at the moment to own rather than rent.
A recent survey by the National Association of Realtors stated that a number of renters felt that their money would be better suited for home ownership.
"Homeownership matters to Americans who consistently realize the many benefits it provides to communities, families and the nation's economy," said Gary Thomas, president of NAR. "Due to high housing affordability and today's interest rates it makes sense for people to consider homeownership over renting. In fact, in many parts of the country it's cheaper to own a home than to rent one. Therefore, it's no surprise that renters recognize that owning a home offers tremendous long-term benefits and is an investment in their future."
Additionally, the survey reported that eight in 10 people considered buying a home as a positive, while 68 percent believed that now is the right time to buy. A large number of the renters surveyed are considering making the switch, as well, more than 10 percent higher than in 2011.
Demand for apartments remains despite desire to own
Overall, renter attitude toward home buying is drastically improving, and more people want to buy right now, and some feel that owning a home is a top priority. There is less worry about foreclosed houses, and the economy is generally seen in a better light, according to American Strategies Incorporated.
Even though market perceptions have improved, traditional impediments for buying still exist, according to the NAR. Reasons such as high student loan debt, low wages and a small amount of savings continue to dissuade people from becoming first time home buyers.
Though many prefer owning, renting is still a popular choice given financial limitations. The supply is struggling to keep up, and the apartment industry has struggled to obtain debt financing, the National Multi Housing Council reported.
Mark Obrinsky, chief economist for NMHC, added that the demand is strong, and potential changes could provide an increase in the number of available apartment homes. In contrast to his optimism, apartment construction costs are going up, with a number of industry-related people surveyed reporting a rise of greater than 5 percent in costs, while 29 percent stated a less than 5 percent increase over the past year.