Key Highlights
- New research by Zumper indicates 50% more renters of all ages moving back in/with their parents during 2020 than in 2019
- 75% of Millennials moving back with parents this year compared to last year
Renters have been on the move in 2020, according to the rental marketplace, Zumper. Interestingly, nearly 50% of renters of ALL ages moved back with their parents during this pandemic year compared to last year. Even more interestingly, 75% of Millennial renters moved back with their parents this year compared to 2019.
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For many renters, relocation in 2020 has been the name of the game. An eye-opening 27% of renters overall moved to a new area in order to take advantage of a professional opportunity. Other motivations for renters to move included:
- 22% – personal reasons
- 21% – family reasons
- 13% – cost of living
- 10% – try something new
- 7% – live with their significant other
Others said that the increase in remote working opportunities made it easier to work and live anywhere.
In this survey recently released by Zumper, renters were asked whether or not the economy was in good condition and a whopping 61% said, “No.” Even in the early days of the pandemic, +33% of the renters responding to this survey said they had lost at least 50% of their income in April. Some 15% of respondents were laid off; 12% had missed at least one rent payment; and 9% had been furloughed.
Despite the fact that, according to the National Association of REALTORS®, 34% of all home sales in 2020 have been attributed to first-time buyers who tend to be Millennial age and a bit younger, one in three renters do not see homeownership as a major or life goal and, in fact, 26% of the renters surveyed said they never intend to become homeowners.
For those 67% of renters who do plan to become homeowners some day, 35% of them estimate they’ll buy a home within the next two years while 29% foresee buying a home in 3 to 5 years; 7% in 6 to 9 years; and 4% say they’ll buy a home in 10 or more years.
Renters who do want to become homeowners indicated that the factors that kept them renting and not buying included:
- 79% – their financial situation
- 27% – their family size
- 26% – mortgage rates
- 20% – ease of living
- 14% – taxes
It’s worth noting that student loan debt did not make this list.
Thanks to Zumper and CNBC.
Also read: California’s Housing Market Defying COVID, Yes, Private Island CAN Sell Via Video Touring, Big Housing Story of Decade – The Growth of Renting
