Since the real estate market crash, people have been skeptical about buying a home. Home prices throughout much of the country are starting to rise. At the same time, the number of foreclosures on the market decline. Despite the signs of progress, many people are still having a hard time deciding between renting and buying.
In fact, with rental rates rising, one might suspect that the number of people buying in the current housing market would increase; however, it appears as though potential homebuyers are still opting to rent.
Consumer Confidence Remains Low Despite Market Progress
One of the main reasons for homeowners clinging to renting as opposed to buying involves consumer confidence. The MacArthur Foundation found in a recent study that despite the fact that the housing market is improving nationally, consumers still lack confidence in real estate.
Specifically, the study found that 77% of people believe America is still in the middle of the crisis or believes that the housing market has not yet hit the bottom (that it will get worse). That is a staggering number that definitely explains why people are opting to rent as opposed to buy in the current real estate market.
However, the survey also revealed that more than 70% of people still claim that they want to own a home in the future – showing that homeownership is still very much a part of the American Dream.
At the end of the day, the demand for housing is still high as rental rates increase – factors that are clearly being driven by a lack of consumer confidence in the real estate market.
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