More Baby Boomers Find They Enjoy Renting
They prefer to avoid the financial responsibilities and stresses associated with homeownership
A growing number of Baby Boomers now believe that it’s better to rent than to buy a home in the current environment, with 80% on board, up from 63% a year ago, according to a report from Bank of America.
This cohort is a growing constituency for multifamily landlords. Meanwhile, younger renters may be more temporary as many are unsure whether now is a good time to buy and whether they can afford it.
Many prospective buyers feel that they lack the confidence needed to begin their homebuying journey, and don’t want to make a mistake, according to BoA.
About four in 10 aren’t confident in their understanding of financing or securing a mortgage and 53% aren’t fully aware of homebuyer grant programs. About four in 10 struggle to understand interest rates and some homebuying terminology.
Prospective homebuyers are worried about the long-term consequences of renting when it comes to securing their financial future, BoA finds.
It found that 70% feel they are not investing in their financial future by renting and 72% fear rent hikes could jeopardize their financial stability. Among prospective buyers, 81% said that renting is temporary and suits their current stage in life and 76% are planning to buy a home within the next five years as 67% of prospective homebuyers would prefer to own a home.
Nonetheless, former homeowners — particularly among the Baby Boomer set — can appreciate the freedom from property maintenance and repair work that renting offers.
BoA said that 90% prefer to avoid the financial responsibilities and stresses associated with homeownership and 87% value the sense of freedom to move when and where they want to that comes with renting instead of owning a home.