According to a study from LendingTree, though most homeowners say they prefer owning over renting, more than 1 in 10 say that they would like to go back to renting.
Young homebuyers report the highest dissatisfaction with homeownership. LendingTree reports that 23% of Gen X homeowners and 21% of millennials are dissatisfied with their home, compared to 4% of baby boomers and 3% of homeowners aged 73 and older. Additionally, almost a quarter of parents with kids under the age of 18 are dissatisfied with their home.
According to LendingTree, factors impacting homeowner outlook on renting vs. owning can include the level of commitment that goes into becoming a homeowner, as well as the financial responsibilities involved.
Rents increased 2.9% year over year in February 2019, and CoreLogic states that Single-family rents climbed steadily starting in 2010, and annual rent increases have stabilized, fluctuating between 2.7 and 3.1% for the past 12 months. However, in some metros, renting is still cheaper than owning. LendingTree compared monthly rental and mortgage payments for homes in the 50 largest U.S. metros to rank the top locales for each option. LendingTree’s list of cities where renting is cheaper than owning a home includes Louisville, Kentucky; Milwaukee; Oklahoma City; and more.
This preference for renting could be good news for investors. Real estate investments, including rental properties, are more popular than ever, according to a recent Gallup poll. That poll found that 35% of Americans consider real estate to be a superior investment over stocks, compared to 27% who said stocks were a wiser choice.
For these investors, “opportunity zones” may be the way to go.
Department of Housing and Urban Development Secretary Benjamin Carson was recently interviewed on Fox News’ "The Next Revolution with Steve Hilton” to talk the proposed new regulations aimed at making it easier for investors to take advantage of tax breaks for investing in “Opportunity Zones” in low-income areas.
Going forward into 2019, real estate investment will be about “looking good,” according to Chris Dunlap, VP and Risk Services Lead for Hub’s National Real Estate Practice.
“Properties that maintain—or improve—their standing will be best positioned to keep costs at bay,” said Dunlap. “The proven way to do this is to invest in tighter risk management, including disaster preparedness ahead of the next catastrophic event and engaging your property policy broker to do what they do best—negotiate on your behalf.”