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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 November 2024 J O U R N A L "While the housing market flirted with a recession in May and June, it didn't fully commit, and July is already showing signs of a comeback," she said. "Mort- gage rates fell in July and August, which improved affordability and eased the rate lock-in effect. While this rate drop has not yet spurred a significant rebound in housing activity, it provides a glimmer of optimism that the peak risk of a housing recession may be behind us." RENTING VS. BUYING: SINGLE- FAMILY HOMES OFFER TENANTS MORE OPTIONS W hile some believe the "Amer- ican Dream" is still attainable in today's market, new Point2 data showed that a growing number of prospective homebuyers do not see themselves as homeowners, citing a com- bination of factors such as mortgage rates, availability, and growing home prices. Because many Americans don't believe homeownership is likely in their future, renters of single-family homes have grown to be a major force in the residential market, greatly influenc- ing the post-pandemic environment. Home renters place a higher value on attributes usually associated with homeownership—privacy, space, and a yard—than apartment residents. However, according to a recent Point2 survey, pet accommodations are now more important to renters than having enough space for growing families. Due to rising home prices, mortgage rates, and limited availability, renting is typically the best option. Additionally, as homeownership becomes more and more unattainable, single-family rentals are now the entry point for those who are no longer able to afford to buy—re- defining the term "starter home." To some, it would make sense that a growing number of U.S. renters are choosing to live in and rent single-fam- ily homes. In addition to being signifi- cantly larger, they are brand-new builds that have advantages such as contempo- rary, higher-quality materials, contem- porary designs, cutting-edge appliances, in-demand facilities, and even opulent features and finishes. However, maybe it's safe to agree that some people's love for their homes would never outweigh their love for their pets. When it comes to choosing a house over an apartment, the main reasons most choose rental units are privacy and space; home size comes in second, right behind rent. But the other thing that home renters prioritize? Their fur babies. Animals are like family to many, so it may not come as a surprise that renters factor them into their housing choices. Better pet accommodations were cited by over 13% of respondents as the primary justification for renting a single-family house rather than an apartment. While it may not seem like much, it is more than the 11.3% of respondents who stated that their pri- mary motivation was to accommodate a growing family. Moreover, over 68% of respondents to the survey own pets and view their furry family members as members of the household. Nearly 6% of respondents think that having a pet would even justify a rent increase, and over 23% of respondents feel that a pet policy is important when choosing a rental. Home Renters Satisfied With Rentals, But Half Would Still Purchase Property Home renters have mixed preferenc- es: they enjoy the stability that comes with longer stays, but they also value the flexibility and convenience of renting. Their comprehension of the trade-offs between owning and renting is facilitat- ed by this balance, which in turn molds their preferences for the most important aspects of a house. Approximately 1,020 of the 1,509 respondents in the poll are renters. Remarkably, although the majority are happy with their present rental, roughly 27% took a neutral position, expressing neither specific satisfaction nor disap- pointment. This impartial stance might indicate that they are balancing the flexibility of renting against the long-term commit- ment of purchasing or the need for a more customized place. Even still, there is still a lot of attraction to the American Dream of home ownership, as nearly 52% of renters said they remain interest- ed in purchasing a home. Remaining in one's current res- idence is the second most preferred housing option; over 19% of respondents are determined to do so because they value the stability and flexibility that renting offers. This kind of commitment ultimately affects the improvements that