New research shows 47% of renters think they’ll be ready to buy within four years, with modern credit tools helping ease concerns about qualifying.
COSTA MESA, Calif. — Nearly half (47%) of renters in the U.S. believe they’ll be ready to purchase a home within the next four years. That figure jumps to 67% when looking over the next eight years, according to new research from the credit reporting company Experian.
Gen Zers and millennials appear to be the most optimistic about the prospects of homeownership, with 48% of Gen Z non-homeowners and 50% of millennial non-homeowners indicating they’ll be in a position to buy a home by 2029.
According to the research, funds for a down payment (67%), home prices (66%) and low credit scores (51%) were cited as the biggest barriers to homeownership for current renters and nearly 40% rate their understanding of financial concepts tied to homeownership as “fair” or below.
While Experian’s latest State of the U.S. Rental Housing Market Report shows roughly 60% of today’s renters have near-prime or better scores, nearly a quarter (23%) say they’ve been denied a mortgage or rental application because of their credit score.
Renters stated the following forms of support would be most useful on their homeownership journey:
- Financial support (61%)
- A clearer understanding of what I can qualify for (51%)
- More financial knowledge about the mortgage process (38%)
“We know today’s renters are hungry for more knowledge, with many turning to friends and family and online resources to improve their understanding of financial concepts,” said Christina Roman, consumer education and advocacy manager at Experian.
Consumers’ sentiment about the prospects of homeownership come at an interesting time for the mortgage industry, following the Federal Housing Finance Agency (FHFA) and Director Bill Pulte’s recent approval of VantageScore 4.0 for use in mortgage decisions. The more modern scoring model considers rental payments and other forms of alternative data, making it especially beneficial for renters pursuing homeownership who consistently pay their bills on time but may have limited credit histories.
“As an industry, we have an important role to play in helping close the homeownership gap and making the dream of owning a home a reality for more consumers, including current renters and younger Americans who represent a powerful segment of future homeowners,” said Michele Bodda, president for Experian housing, verification solutions and employer services.
Source: Experian
© 2025 Florida Realtors®
Go to Source
Author: amyc