Dream On: Renters Aspire to Buy Soon
U.S. Housing Confidence Survey: More than one-third (36%) of all renter respondents say they expect to buy a home within the next two years. Although their optimism is inspiring, the majority of these renters will travel a longer path to homeownership. The 36 percent figure extrapolated to the national level translates to an average of more than 7 million first-time buyers in each of the coming two years. [1]
[1] Some (unknown) minority of renter households has owned a home in the past. There are approximately 41mm renter-occupied homes in the U.S. (36% = 14.8mm). According to NAR, about 40% of all home sales involve a first-time buyer in a “normal†year. If one assumes 5.5mm total average annual home sales, first-time buyers will absorb 2.2mm units in each “normal†year.