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Purchasing a home not a top priority for renters

Posted on Wednesday, November 18, 2015 at 4:03:04 PM

Putting money aside for a down payment on a new home is not high on the list of priorities for renters, an online survey conducted by Freddie Mac in October found. The government-sponsored enterprise reported that despite a lack of urgency, nearly half of renters in single-family residences were dissatisfied with the experience and therefore likely to purchase a home within the next three years. There's plenty of lending money available for the upgrade. 

Renters told Freddie Mac that, though they felt some stress about their finances - 66 percent reported carrying debt from month to month - the majority had hope that they would be able to pay down their debt. They had several top priorities for which they were saving money, though a down payment on a home was not yet one of them. Instead, 59 percent said they were saving for an emergency, 51 percent for retirement, and 50 percent for their children's education. Only 39 percent reported saving for a home purchase.

On a generational scale, the survey found that while Millennials save for short- and long-term purchases (like cars or vacations) more often than Boomers and Gen Xers, Gen Xers are more likely to buy a home. Those findings accord with an analysis of Merrill Edge data conducted by Time in October, which described Millennials as eager to save, but willing to dig into savings for big purchases.