Own-Rent Analysis Reveals Factors Influencing Consumers’ Decision to Buy Versus Rent a Home
The Fannie Mae August 2012 Own-Rent Research Brief investigates the factors that drive Americans’ intentions to own or rent their home. The study provides insights into Americans’ homeownership preferences and raises possible implications for both housing policy makers and industry players in their efforts to manage housing-related risks and to encourage consumers to make sustainable housing choices to ensure a well-functioning housing marketplace. Findings suggest:
- Americans are affected by a mix of demographic and attitudinal drivers in making the own-rent decision.
- It is possible that many of these drivers, especially attitudinal drivers, act as automatic or unconscious biases that lead consumers to their respective housing choices.
- Resources to help consumers to more deliberately understand and balance these drivers may allow them to make better, more sustainable housing choices.
- Exposure to mortgage default, perceived home value appreciation/depreciation, and self-reported underwater status are not significant factors in the models in predicting individuals’ intentions to own a home for their next move.
- These results suggest that Americans’ aspirations to own a home are strong even facing the dramatic challenges in the housing market over the past few years.
On this webpage you will find links to the research brief, the data analysis presentation, and an FM Commentary from research authors Li-Ning Huang and Steve Deggendorf.