Survey: Even Homeowners Say Renting Is Best Move

(May 27) -- With the chances of home value appreciation looking dim, the continued risk of foreclosure and the cost of maintenance growing as a home ages, maybe owning a home isn't such a good idea right now.

That's what U.S. homeowners seem to be concluding. In a recent survey about renting versus owning, homeowners made up the majority of the respondents -- by a factor of more than 2-to-1 -- and yet 76 percent of all those surveyed deemed renting a better deal than owning a home in today's housing market.

As a homeowner, it's simply tough to shell out maintenance and upkeep cash on a property that offers little if any equity to tap for the expense. And with so much uncertainty in the job market, homeowners aren't sure they can hold on to what they've got.

Even if ownership comes with the promise of appreciation over the long haul, renters just don't want to risk what homeowners are already suffering in the current economic environment.

A Harris Interactive Survey for the National Apartment Association (NAA) said the number of people who believe renting is better than owning right now is up 5 percent over the 2008 survey for several reasons.

Renting comes without the responsibility for major repairs or maintenance, 64 percent of those surveyed said.
Renting avoids the financial impact of a floundering real estate market, 50 percent said.
Renting does not expose you to foreclosure, 33 percent said.

NAA's survey follows reports that a growing number of consumers are hedging their housing bets in the rental market because of lingering fears about home values.

Their fears are not unfounded. Major real estate search engine Trulia.com reported earlier this month that immediately after the federal home buyer tax credit expired, a rising number of sellers were slashing list prices an average of 10 percent nationwide.

"While some may want to declare the housing crisis over, consumer patterns of behavior are showing otherwise," NAA President Douglas Culkin said in a statement.

"The findings in this survey mirror what our members are seeing throughout the country, especially in areas of the country that are experiencing the first signs of economic recovery," Culkin added.

Harris Interactive conducted the online survey of 1,443 homeowners and 617 renters from May 3 to 5.

The survey also found:

Only 14 percent of renters believe that buying a house is preferable to renting.
Twelve percent of renters plan to buy a home this year, but 60 percent of renters plan to continue renting their current residence or rent elsewhere within the next year.
Among homeowners, 71 percent of them are not moving in the next year.
Indicating that the economic impact of the foreclosure crisis has not abated, 93 percent of adults believe the financial security of homeowners is affected by the current state of the housing market -- the same percentage that answered the question likewise in 2008.

"The simple fact remains that in a bad economy, people must make whatever changes necessary to improve their situation, especially if they have lost their job," Culkin said. "Sometimes this might mean moving to another city where there is more opportunity, and if you're tied to a mortgage, you don't have the same ease of mobility as you do if you lease your home."