Most people know that homeownership is a better option than renting, especially because monthly mortgage payments are oftentimes lower than their monthly rent. While the price of rent continues to increase, a recent study reveals that more Americans still prefer to rent than to own a house.
In a recent survey conducted by Freddie Mac on more than 4,000 adults, it has been found that more people still preferred to rent than to buy their own home, Realtor.com reported. According to the findings, 70 percent found that renting a home was still more affordable than buying one.
"While most renters still have favorable views toward homeownership and aspire to it, many choose to rent because they view it as more affordable and a better fit for their lifestyle right now," said executive vice president of Freddie Mac, David Brickman.
The said survey revealed that different generations had varied reasons for their preference for renting over owning. According to the publication, the millennials found that renting allows them to save money and live at a place more suitable for their lifestyle.
Generation X and baby boomers, on the other hand, preferred to rent because it does not entail certain responsibilities of owning a home and maintaining one. These generations also cited reasons why they could not afford to buy a home.
The publication noted that 36 percent of the respondents found a hard time saving for the down payment. About 35 percent said that they did not have good credit to apply for a mortgage while the rest reported on having a lot of debt as the major roadblocks to buying a home.
As previously reported here on Realty Today, there are ways to save up for the down payment on your dream house. Simply changing your routine and opting to rent in a smaller apartment can do drastic changes to your savings account. Eating at home instead of having dinner outside will also help add up to your savings.