Zillow was out Monday with a new report on people who are in the market for a new place to live. Among its key findings:
–Renters make up a larger group of the U.S. population than at any time in the last 50 years. Last week, the U.S. Census Bureau reported the home-ownership rate rose very slightly to 63.5% in the third quarter of 2016 – barely edging up from a 51-year low.
— More than half (58%) of all renters in the market for a rental home consider buying a home instead.
— Renters spend an average of 10.4 weeks searching for a rental home or apartment, while the average buyer shops for about 17 weeks to buy a home.
— Low-income renters take significantly longer searching for a new place to live – even in weak rental markets.
Zillow surveyed more than 13,000 renters, homeowners, buyers and sellers about their home search, aspirations, and preferences.
More than half — 54 percent — of buyers do not get the first home on which they make an offer. First-time home buyers make up 47 percent of all buyers, so it’s feasible for many potential buyers to keep their options open and return to renting if they aren’t successful purchasing a home.
“The line between renting and buying is blurry, and that’s a sign of the times,” said Zillow Chief Marketing Officer Jeremy Wacksman. “It’s difficult and time-consuming to find a home to move to, especially in competitive housing markets. With first-time buyers competing for a limited number of homes on the market, savvy shoppers have a Plan B, hoping to buy if it works out, but willing to sign a lease for a home if they don’t make a deal by the time they need to move.”
Among those who bought a home in the last 12 months, 66% of Millennials considered renting as well. Just over half (54%) of Generation X buyers considered renting, and 32% of Baby Boomer buyers.
Younger renters are also more flexible when looking for a home to rent – 63% of Millennials and 59% of Generation X renters considered buying while looking for a rental. Among renters over 50, most did not consider buying at all.
For many renters, buying is not a financial option. The median income of home buyers is $87,500 a year, while renters make, on average, $37,500. Low-income renters looking for a new home in a tight rental market can expect to spend an average of 12.1 weeks looking for a home, according to Zillow’s analysis of survey responses and rental markets.
