‘Throw away money’ or ‘have more freedom’? Half of tenants rent because they have no other choice

by archynewsy
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Not too long ago, talking about renting a house raised two types of reactions: on the one hand there were those who said that renting was “wasting money” and on the other hand there were those who defended that it was an option that gave you greater flexibility and freedom to change at any time. Both of them would come together today at the same point: many tenants have no other option and rent because they have no other choice.

Leasing was for many people the only possible alternative to buying to leave their parents’ nest. The point is that there are more and more people in this situation, that is, there are more and more tenants who admit to resorting to renting due to the impossibility of accessing the property for economic reasons. It’s about a impediment that 38% use of those who have rented or tried to rent in the last year and is, therefore, the main reason why individuals choose to rent rather than buy, according to the report’s conclusions Rental experience in 2023 prepared by Fotocasa Research. In addition, there is another 19% who are waiting for the prices of housing for sale to drop so they can leave the rental market. In other words, renting is no longer an option and becomes almost mandatory for those who aspire to access housing.

“Although the feeling of ownership remains deeply rooted in our society, each year a tenant’s hope of becoming a homeowner decreases. In fact, almost 60% of tenants rent due to economic reasons, a percentage that has increased 7 points in the last year. Therefore, the idea that renting offers flexibility and freedom or that it favors labor mobility loses relevance among tenants who see how rents are becoming more expensive at the highest rate in the last decade and the price becomes the main obstacle and inequality factor that truncates its objectives,” explains Maria Matosdirector of Fotocasa Studios.

The labor mobility is the argument used by 22% of those surveyed to explain their preference for renting – four percentage points less than a year ago – while the idea that renting allows for greater flexibility and freedom is shared by 17%, 6 % less than in 2022. “It should also be noted that this argument had already been receding since 2021, when 26% claimed that they opted for renting for this reason,” they point out from Fotocasa. 16% assure that their commitment to renting has to do with the increase in mortgage interest rates; another 12% because there is certainty of income in the medium term and 10% recognize that they prefer to rent rather than buy because their employment situation has worsened in recent months.

In a general context marked by inflation and the slowdown of the economy, housing has become one of the biggest sources of concern for households, especially for those who had variable mortgages and have seen how their payments have become more expensive in last year due to the impact of Euribor. But the rise in prices is also having a dent in the rental market, where rents are at historic highs. The effort to meet monthly payments in one scenario or another has increased and in many cities and municipalities in the country it far exceeds 35% of the recommended disposable incomewith what that means for the people affected.

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