The number of American renters who can’t afford to buy a home is through the roof, according to a new survey by mortgage insurer Freddie Mac.
The Wall Street Journal reported that the group of renters who say they don’t have enough money to become a homeowner rose from 59 percent to about 67 percent in just two years time.
“Housing is becoming less and less affordable. Renting is perceived to be the more affordable housing option,” said David Brickman, head of Freddie Mac’s multifamily division.
Though more renters report being better off financially than they were last year, that’s not enough to compensate for the pace of housing prices. According to an analysis cited by the Journal, the S&P CoreLogic Case-Shiller National Home Price Index rose 6.2% year-over-year this January, but average apartment rents only rose 3.9% over roughly the same period. [WSJ] — Will Parker