Millennial Renters Abandon Their Plans To Buy A Home
Authored by Mike Shedlock via MishTalk,
Many renters who were in the market to buy a home pre-Covid just threw in the towel.
A lifestyle survey shows millennials top the list of those canceling home-buying plans.
At the start of 2020, 11% of renters said they were ready and planning to buy a home this year, according to a recent survey conducted on RENTCafe.com. Conditions were looking up for Gen X renters, 15% of whom were making plans to buy a home this year, as well as for 14% of Older Millennials. However, the pandemic has obstructed the path to homeownership for 43% of renters ready to buy, our survey results revealed
The survey, which ran at the end of May 2020, asked 7,000 renters about their housing plans before and after the coronavirus hit.
One in Ten Renters Were Ready to Buy a Home
43% of prospective home buyers who said they changed their plans quoted economic uncertainty as the top reason for doing so, followed by loss of income as the second most cited reason. Given the unprecedented times we’re living in, even the few renters who were determined to make the commitment to buy a home this year are now getting cold feet. Moreover, as many as 50% of Older Millennials, the most likely demographic to become homeowners, were forced by the pandemic to let go of their dream.