Are U.S. adults buying more homes now that apartment rents are on the rise?
It doesn’t look like it. According to the latest research from Freddie Mac, most renters are staying with apartment living even as rents in cities across the country continue to creep higher.
“This contradicts what some in the housing makret think, as they expect more renters ought to be actively looking to purchase a home,” said David Brickman, executive vice president of Freddie Mac Multifamily, in a written statement. We believe rising rents are primarily a sign of increased demand rather than a signal that home home purchases will be increasing.”
Freddie Mac reports that apartment rents rose 3.6 percent in 2014 across the country and are expected to rise 3.4 percent above inflation this year. More than one-third of U.S. households now rent their homes, according to the U.S. Census Bureau.
Freddie Mac found that 38 percent of renters who have lived in their home two years or longer experienced a rent increase in the last two years. Only 6 percent saw a decrease in rents.
How happy are renters? A third of renters told Freddie Mac that they are very satisfied with their rental experience, while another 30 percent said that they are moderately satisfied.
And what do renters like most about renting? Freddie Mac found that they like the freedom from home maintenance, the greater flexibility over where they live and protection from declining home prices.