Takeaways:
- Renters of single-family homes are more likely to buy compared to those renting apartments.
- Just over half of all renters intend to continue renting for the next three years.
- Satisfaction with renting plays a role in potential homebuyers’ decisions to buy or rent.
Real estate agents looking to turn renters into buyers might want to focus on a specific subset of renters: those renting single-family homes.
Households or individuals renting single-family properties — homes, condominiums and townhomes — are more likely to buy than those in apartments, according to research from Freddie Mac.
Single-family renters are significantly more likely to buy than multifamily renters – 53 percent versus 36 percent – in the next three years.
Combined, 55 percent of single-family and multifamily renters intend to rent for the next three years.
Satisfaction with one’s rental experience is a factor when it comes to buying a home. No surprise, renters who are most satisfied with their experience (68 percent) will continue to rent, Freddie Mac said.
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Nearly 50 percent of renters surveyed said they like where they live and will stay regardless of rent increases.
Roughly 45 percent of renters who have lived in their home for two years or more have experienced a rent increase in the last two years. Of those renters, 70 percent agreed they would like to buy a home but can’t afford it.
The top favorable factors cited by respondents about renting include: freedom from home maintenance, more flexibility over where you live, and protection against declines in home prices.
In the U.S., roughly 15 million households rent a single-family house and 25 million rent an apartment, according to U.S. Census Data.
