Lifestyle changes make most renters want to own a home

Lifestyle changes make most renters want to own a home

Although non-homeowners were less optimistic last quarter about it being a good time to buy, an overwhelming majority report they do want to own a home in the future, according to the National Association of Realtors.

Despite rising rental costs, lifestyle changes among non-homeowners, such as getting married, starting a family or retiring, in addition to financial situation improvements, are factors outweighing rent increases as the main motivators for deciding to buy a home.

In 2017, around three-quarters of non-homeowners claimed they eventually want to own a house. However, a bigger homebuyer pool could further threaten the housing market which is already plagued by strong demand and little inventory, making it critical for the nation to start seeing some growth in the new and existing home supply.

More renters want to own a home

“A tug-of-war continues to take place in many markets throughout the country, where consistently solid job creation is fueling demand, but the lack of supply is creating affordability constraints that are ultimately pulling aspiring buyers further away from owning,” Lawrence YUN, NAR chief economist, said in a press release.

“These extremely frustrating conditions continue to be most apparent at the lower end of the market, which is why the overall share of first-time buyers remains well below where it should be given the strength of the job market and economy,” he continued.

If rent continues to increase, about 42% of renters said they would resign their lease, and 25% said they would move to a cheaper rental. And though higher rental costs may push some renters to become homeowners, extreme shortages in housing supply continue to put upward pressure on home prices, lowering optimism for non-homeowners who ultimately wish to own homes.

 


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When Is a Good Time to Rent in Hunterdon or Somerset County? Not Now!

When Is a Good Time to Rent in Hunterdon or Somerset County? Not Now!

People often ask if now is a good time to buy a home, but nobody ever asks whether or not it’s a good time to rent. Regardless, we want to make certain that everyone understands that now is NOT a good time to rent.

The Census Bureau recently released their 2018 first quarter median rent numbers. According to their report, here is a graph showing rent increases from 1988 until today:

When Is a Good Time to Rent? Not Now! | MyKCM

As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead.

Bottom Line

One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, let’s meet to determine if you are able to today!

 


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The Cost of Renting vs. Buying in Hunterdon and Somerset Counties

The Cost of Renting vs. Buying in Hunterdon and Somerset Counties

The Cost of Renting vs. Buying [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Historically, the choice between renting or buying a home has been a tough decision.
  • Looking at the percentage of income needed to rent a median-priced home today (28.8%) vs. the percentage needed to buy a median-priced home (17.1%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year! 

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Renters Under 50 Want to Buy a Home in Hunterdon and Somerset Counties!

Renters Under 50 Want to Buy a Home in Hunterdon and Somerset Counties!

Every year, the New York Federal Reserve publishes the results of their Survey of Consumer Expectations (SCE). Each survey covers a wide range of topics including inflation, labor market, household finance, credit access and housing.

One of the many questions asked in the housing section of the survey was:

Assuming you had the financial resources to do so, would you like to OWN instead of RENT your primary residence?

Over three-quarters of respondents under the age of 50 said that they would prefer to own their home, rather than rent. While only 52.6% of those over 50 would prefer to own. The full breakdown can be found in the chart below.

Renters Under 50 Want to Buy a Home! | MyKCM

When renters were asked what the average probability of owning a primary residence at some point in their future was, 66.4% of those under 50 believed that they would eventually own their home, while only 23% of those over 50 did.

Renters Under 50 Want to Buy a Home! | MyKCM

Bottom Line

Many had wondered if young Americans had lost their desire to own a home, but for those renting now, that dream is still alive.

 


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Home Buying Myths Slayed

Home Buying Myths Slayed

Home Buying Myths Slayed [INFOGRAPHIC] | MyKCM

Some Highlights:

  • The average down payment for first-time homebuyers is only 6%!
  • Despite mortgage interest rates being over 4%, rates are still below historic numbers.
  • 88% of property managers raised their rents in the last 12 months!
  • The credit score requirements for mortgage approval continue to fall.

     


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