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14 IS RENTING REALLY SUCH A BAD IDEA? Renters are more likely to face social and economic pressures than homeowners, according to a new survey by Apartment List. e survey found that 30% of Americans, which included renters and homeowners, believed that there was a negative stigma against renters. It indicated that this stigma was born out of long-standing societal perceptions of success and homeownership and the present-day economic and emotional burdens of disappearing affordability. e "renter stigma," the survey indicated, was correlated to age, as well as where renters tend to live. In fact, 33% of 18-29-year-olds believed that renter stigma existed, compared to 23% percent of those over 60. Also, over 35% of people residing in dense urban cores of large cities observed renter stigma, compared to less than 25% of those living in non-metro areas, according to the survey. Renter stigma was also fueled by societal perceptions of homeownership being equaled to success. In fact, 86% of respondents said they believed homeownership was important for personal success and 87% said it was important for financial security. Eighty-two percent of homeowners believe that owning their home is saving them money in the long run, while 62% of renters believe that by renting, they are losing money. Apartmentlist.com said that these perceptions remained despite "a growing body of academic research suggesting that many renters today actually have a wealth-building advantage over homeowners." Interestingly, the survey revealed that homeowners, more than renters were likely to believe in the renter stigma, making it one of the key reasons to own a home. "Among homeowners, those who buck conventional wisdom and say they are losing money by not renting are actually the most likely to believe renter stigma exists. Fifty-five percent of these homeowners perceive a stigma against renting, more than any other group surveyed," the survey found. On the other hand, it indicated that these homeowners could represent those who were willing to pay a premium just to avoid renting and the stigma associated with it or they could be people who were unsatisfied with homeownership and now saw the perception of renting as unduly negative. e belief in renter stigma was highest among the group of renters who experienced some level of emotional stress whenever rent was due. e survey found that many renters made financial and emotional sacrifices to afford their housing costs in the absence of affordable housing options. Some of these short-term sacrifices included withdrawing money from personal savings, putting less money away for retirement, or taking on additional credit card debt. HOW HOMEOWNERSHIP DICTATES FINANCIAL CHOICES Homeownership goals are at the center of the financial choices made by Americans, according to a new Wells Fargo survey. e survey, titled "How America Views Homeownership" revealed that 49% of Americans who are saving to buy or renovate a home have worked outside their primary job to supplement their income in order to pay this expense. irty-seven percent supplemented their income by selling items online, followed by 21% who started a small business, 18% drove for a ridesharing company, and 16% took up chores such as dog sitting/walking to supplement their primary income. Potential homebuyers were also willing to make trade-offs on their preferred locations as well as the size of the home, the survey found. In fact, 78% of those surveyed saying that they were "willing to accept their second choice of a city or town in order to afford their own home." Nearly three-quarters of nonhomeowners (74%) said they were willing to buy a smaller home with fewer amenities too. Looking at different generations, millennials were willing to make more trade- offs than any other generation. e survey indicated that 85% of millennials were ready to consider the second choice of city. While 70% were willing to take up a second job to save for down payment or renovation, 83% of millennials said that they were willing to cut expenses such as dining out, going to events, and vacations. "Homeownership is part of the fabric of American life, defining communities and providing a base for families to live out their dreams," said Michael DeVito, Head of Wells Fargo Home Lending. "As today's consumers set out to achieve their homeownership goals, they are making smart financial decisions that position them—and the communities they call home—for long-term financial success." e survey also revealed why Americans were willing to make such sacrifices and financial decisions to afford a home. It revealed that 70% of respondents saw owning a home as a sign that someone is a "successful adult." Furthermore, it found that "homeownership is much more widely equated with being a successful adult (more than twice as much) than having children (34%) or getting married (32%)." is the growth in refinance activity in 2019 as mortgage rates near record lows. This is an increase from 29% recorded in 2018. Source: Fannie Mae Home Purchase Sentiment Index STAT INSIGHT 35%

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