| February 26, 2016

Research of the Week: Why Do We Rent?

Obviously, some do it because they want to, others because they have to. But the numbers might shock you.

Each week, Consolidated Credit searches for financial research that can help you deal with your debt and budget. This week…

The interesting study

If you rent an apartment, you’ve probably wondered: How many of my neighbors really want to be here?

 

For most of the previous century, renting was seen as temporary for young people – a step toward homeownership. That’s not as true in this century, according to a scientific survey of more than 2,000 adults commissioned by Bankrate, the nation’s largest personal finance research firm.

The big results

“Almost half of non-homeowners say their financial situation stands in their way of purchasing a home,” Bankrate says. The breakdown: 29 percent can’t afford the hefty down payment, while 16 percent say their credit “isn’t good enough to qualify for a mortgage.”

While these renters would love to own a home, many are renting because they don’t want to buy a home: “35 percent say they don’t own because they just don’t want to be homeowners yet,” Bankrate says.

Interestingly, Bankrate muses that the Great Recession explains both groups. Obviously, the first group can’t afford to buy a home, but the second group may seek greater mobility so they can follow where the scarce lucrative jobs are.

“A lot of people went through some deep pains in the past 10 years or less,” one mortgage executive told Bankrate. “All of those things are traumatic in your life.”

The fascinating details

While 44 percent of millennials – between the ages of 18 and 29 – say “they don’t want to own yet,” 29 percent of those over 50 say the same thing.

Bankrate doesn’t hypothesize why that is, but Consolidated Credit president Gary Herman wonders…

“In my two decades as a credit counselor, I’ve seen medical crises devastate older Americans. Many are forced to sell their assets to cover not only the medical bills but the lost income that results. I’ve also seen divorce destroy the finances of both spouses. It’s possible these are factors in Bankrate’s results.”

What you can do

Most curious in the Bankrate survey was this result: “Almost a quarter of non-owners report they don’t have a clue how much they would put down to buy a home.” It seems many renters who consider home ownership don’t realize how to research the topic.

Bankrate’s suggestion? “The solution to misinformation about the home-buying process is to reach out to a nonprofit housing counseling agency.”

These agencies off free, in-depth advice on your unique situation, from homebuyer education to mortgage assistance programs. One of the best-known and highest-rated programs is Consolidated Credit’s Housing Counseling program.  If one of the nation’s many renters who wants to own someday – or even sooner than that – call for details.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
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Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

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Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

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