Morning Briefing: Homeownership delayed on renters’ financial optimism

Renters are feeling more optimistic about their financial situation and are happy to keep renting despite rising costs.

Freddie Mac’s renter survey shows that fewer renters are working towards home ownership amid a feeling that renting will remain affordable.
The share of respondents expecting their next home to be a rental rose to 59 per cent from 55 per cent six months ago.

"It would appear from our new survey that renters today feel better about their finances, like where they are living, and view renting favorably.
This is consistent with findings from earlier surveys that show a steadily growing number of renters have a positive view of renting," said David Brickman, executive vice president of Freddie Mac Multifamily.

In January 2016, 46 per cent of renters said that renting was a good choice for them, this is now up to 52 per cent. Meanwhile, the share who are expecting to move in the next two years has fallen to 33 per cent from 38 per cent just six months ago.

 

More single women and a diverse ethnic mix are key factors among homebuyers in Texas.

Single female buyers have increased 5 percentage points to 19 per cent in the latest Homebuyers and Sellers report from the Texas Association of Realtors compared to a year ago.

Ethnic minorities include 14 per cent Hispanic, 6 per cent African-American and 4 per cent Asian with 27 per cent of first-time buyers identified as Hispanic.

“The profile of Texas homebuyers is as diverse as Texas itself, continually broadening as the demand for Texas real estate grows,” said Vicki Fullerton, chairman of the Texas Association of REALTORS®. “At the same time, rising home prices, lower household incomes, and tight lending standards are making it increasingly difficult for some Texans to afford a home.”

The affordability issues in the state are highlighted by the proportion of buyers who have spent 6 to 12 months to save for a downpayment; in the 2016 report it was 10 per cent, this year is was 40 per cent.

Median household income in Texas has declined almost 3 per cent while the median home price increased to $215,000. Texas A&M University estimates that a typical first-time buyer can afford $150,000.

 

A home shared by singer Iggy Azalea and her ex, LA Lakers’ star Nick Young, has gone on the market in Los Angeles.

The home in Tarzana was previously owned by Selena Gomez and the former couple bought it three years’ ago for $3.495. The asking price suggests they are keen for a quick sale rather than a quick buck, at just $100k above what they paid.

The 6-bedroom, 9-bathroom home boasts a basketball court, which the new owner can be pretty confident has seen good use by Young over the past three years.