Qualified To Buy, But Renting Instead
AUGUST 15, 2016 | BY PAUL BUBNY | GlobeSt.com
Faced with high prices and low inventory, “first-time homebuyers are renting longer than ever before even if they are qualified to buy,” says Svenja Gudell, Zillow’s chief economist.
For additional evidence that renting by choice is a reality, consider a pair of new studies from credible authorities—Zillow and the National Association of Realtors—showing high percentages of renters who could afford to buy instead. Then consider that the two studies reached very different conclusions about the markets where these renters reside.
Zillow’s study, released this past Friday, cited San Jose, San Diego and San Francisco as metropolitan areas with the largest segments of on-market renters with credit scores and income necessary to purchase a home. Los Angeles, New York City and Zillow’s home base of Seattle also made the list of metros with large segments of current renters who are financially qualified to buy a home.
