TD Bank recently conducted a survey of renters where they found that about half are likely to purchase a home in the next two years. The reason? According to Scott Haymore, head of pricing and secondary markets, it's the rising cost of rents.
"With an improving job market and economy, renters are gaining more confidence in the housing market and starting to explore homeownership as a feasible option," Haymore said.
While the survey finds that $1,100 per month in rent is the tipping point where a renter will look to buying a home, there is still worry about the ability to afford.
Renters, who by large are millennials, have a lot to think about right now - student loans, careers, personal lives, the future in general. To them, the dream of owning a home is clouded by so many different numbers, reports and opinions on whether or not to buy, but that does not negate the emotional desire to own a home.
We are about to release new research showing that most by a very large amount want to own a home. They just need it to be simpler, fair and not so risky. One way to help with that is down payment protection. This coupled with many new efforts to taking homes more affordable will help give the renters more choices when they look for their next home.