Single Family Property Renters More Likely To Purchase A Home

Freddie Mac  (the Federal  Home Loan Mortgage Corporation) released a report last week indicating that renters living in a detached house, a condo or a townhouse (a single family rental, or SFR)  were more likely to purchase a home than a renter in an apartment community.

Overall, 55% of renters responded that they intend to continue renting for the next three years. When the data is broken down into the categories above, however, 55 percent  in a SFR intended to buy a house in the next 3 years, where only 36 percent of apartment dwellers (multifamily renters) said the same.

Of course, rental satisfaction plays a large role in this decision.  68 percent of renters claiming to be happy with their rental experience plan to continue renting vs. 32 percent that intend to buy a home.  Apartment renters reporting a happy experience were at 67%, compared to 60% of SFR renters.  This may be due to the fact that apartment communities often have on-site daily management tending to repairs and issues, where many SFR renters have to deal directly with an individual landlord.

The U.S. Census Bureau reports that renter households is up again for the 10^th straight year.

Image courtesy of Stuart miles/freedigitalphotos.net