Is the next generation a bunch of rootless renters, or will they too follow the patterns of previous generations?
Fannie Mae’s Economic & Strategic Research Group sought to better understand what housing choices younger renters prefer – and what financial constraints they see – in order to shed light on the challenge of fulfilling housing aspirations in a financially sustainable way.
The team noted that potential first-time homebuyers face credit standards that have risen since the housing crisis. Overall, the total number of renter households has been increasing since the housing crisis, as the number of owner households has decreased. Still, analysis of data from Fannie Mae’s National Housing Survey shows that most younger renters prefer owning both for lifestyle and financial reasons.