FannieMae Second Quarter Reports
More Stress for Affordable Rental Inventory
Each quarter the Federal National Mortgage Association (FannieMae) releases a comprehensive housing survey. The latest was released August 15, 2011. The survey covers a number of topics but one in particular caught our attention:
- More than fifty percent of renters report living in single-family homes.
- Despite just 23 percent of single-family renters saying that renting makes more sense than buying a home, 53 percent say they would continue renting if they were going to move.
- Seventy-three percent of single-family renters say it would be difficult for them to get a home mortgage, with 33 percent citing their credit history as the biggest obstacle to getting a home mortgage (versus 20 percent of multifamily renters).
- Compared to multifamily renters, single-family renters are younger and more likely to have children.
A majority (53%) of people renting a single family home say that they intend to do the same when they next move! This is a leading indicator that impacts our community’s inventory of affordable housing. If the demand for single family rental units rises, so will the rents. An affordable single family rental house is already a limited commodity in Greater Des Moines. It looks like it will only get more scarce. The Polk County Housing Trust Fund needs to help fund creative solutions to this coming problem. Working with private landlords is one way to do that.