How many first-time buyers pulled back when the pandemic hit? A renter survey found that almost half of the renters dreaming of ownership pushed the pause button.

NEW YORK – According to a RentCafe survey of 7,000 renters conducted at the end of May, close to 45% of renters actively considering a home purchase delayed or derailed their plans when the pandemic hit.

The same survey found that almost 25% of renters doubt they’ll ever buy a home, citing not just the pandemic but also pessimism about overall high home prices. The percentage was even higher, about 60%, for members of the baby boom generation; however, less than 15% of Gen Z and millennial renters said they would never buy a home.

Of those renters still interested in at least one day owning a home about 66% of millennials said they would buy one within in the next five years, with 60% of Gen X and 50% of Gen Z respondents saying the same.

While reactions to the pandemic have made it more difficult to buy a home for many renters, many are still being approved for a loan. Mortgage applications were up 33% year over year last week, according to the Mortgage Bankers Association, and the average purchase loan price rose to a weekly high of around $365,700.

Even renters without ownership aspirations plan on changes, according to the survey. Nearly a third of millennials and a quarter of Gen X renters planned to upgrade to a larger apartment, and about 40% of Gen Z renters want to downgrade to a smaller apartment, compared to 25% of millennials who said the same.

Source: The Real Deal (07/09/20) Lynch, Dennis

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