Why renters are looking for affordable homes

Nearly two in three American renters have thought about moving to a cheaper place. current economic conditionsNew research suggests.

In fact, an equal percentage believe they will never own a home for this reason.

of 2,000 tenants Polled in November, 74% say they are concerned about the state of the economy, and seven in 10 report their income is not enough to cover rent, bills and household essentials.

That may explain why half of respondents are deep in debt to their landlords – and it doesn’t help that 61% saw their rent increase in the past year.

With these financial difficulties in mind, survey respondents suggested that, on average, 31% of one’s income should go to paying monthly rent, and 35% to other monthly expenses and needs.

Among renters in that category, 65% have had to look for the cheapest rental housing, 60% have reduced the size of their apartment/house and 57% have negotiated a fair price/increase with their landlord. have tried.
According to a new survey, more than half of respondents revealed that inflation has influenced their rental decisions.
lemonade.com
Majority of the people believe that the rental market will continue to grow post COVID (65%).
Majority of the people believe that the rental market will continue to grow post COVID (65%).
lemonade.com

However, 69% are optimistic that their economic situation will improve in 2023.

As per the survey conducted by the insurance company lemonade And OnePoll, 57% of respondents revealed that inflation has influenced their rental decisions.

65% of renters in that category have had to search for the cheapest rental housing; 60% downgraded the size of their apartment or house; And 57% have tried to negotiate a fair price with their landlord.

Regardless, 65% believe the rental market will continue to grow after covid,

Half of respondents disclosed that they are in debt to their landlords (51%), and it doesn't help that 61% saw their rent increase in the last year.
Half of respondents disclosed that they are in debt to their landlords (51%), and it doesn’t help that 61% saw their rent increase in the past year.
Getty Images/Westend61

When asked what are the advantages of renting, most renters cited reasons such as not having to worry about property taxes (69%); having the flexibility to live anywhere (66%); and not worried about repair bills (59%).

Respondents also listed disadvantages of renting, such as dealing with a bad landlord (62%); subject to rent increase (61%); and being unable to make changes to your rental property (60%).

Nearly two in three American renters (63%) have considered moving to a cheaper location because of the current cost of living.
The current cost of living has caused nearly two in three American renters to consider moving to a cheaper location.
lemonade.com

“Between the cost of rent, the lack of inventory and mass migration “As we saw during the pandemic, the rental market has experienced tremendous volatility across the country over the past few years,” Sean Burgess, Lemonade’s chief claims officer, said in a statement.

“And when we’re starting to regulate prices across the market and return more traditional moving trendsRising inflation and the general fear of recession will continue to fuel this unrest for some more time.

The survey also asked respondents to describe their rental situation, with 53% saying they signed a new lease agreement during the pandemic.

73% of those who signed a new lease during that period said it was a “sweetheart deal” or an informal agreement between them and their landlords.

A survey conducted by Lemonade and OnePoll found that more than half of respondents said inflation affected their rental decisions.
A survey conducted by Lemonade and OnePoll found that more than half of respondents said inflation affected their rental decisions.
lemonade.com

It’s no surprise that 84% now regret signing those sweetheart deals in the first place. Many respondents also realize that those informal deals do not provide them with security as tenants; It is only temporary; And it doesn’t provide them any stability.

Still, 64% think that the current home they are renting is worth the money they are paying.

“Now more than ever, many renters are paying more in their monthly rent than they originally expected, so what better time than now to protect yourself from additional financial burdens?” Burgess added.

“This is where renters insurance can play a big role, protecting not only the things in your home but also the things you own. For example, if one’s apartment becomes uninhabitable due to a fire or if If someone is hurt in their home they are liable for, they are potentially covered through their insurance policy. At the end of the day, this can save hundreds or even thousands of dollars in unexpected expenses.

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