In a sign that consumers may be shifting preferences from renting to homeownership, a new TransUnion (NYSE: TRU) analysis found that 55% of those who shopped for a mortgage in Q1 2017 were non-homeowners – most of whom are renters. This is a significant rise from Q1 2016 (50%) and Q1 2015 (45%).
TransUnion’s report found that millennials’ interest in homeownership is growing steadily over time. In 2017, three in 10 (29%) non-homeowners who shopped for mortgages were millennials, up slightly from 28% in 2016 and 27% in 2015.
In addition, 34 million renters between ages 25 and 44 – typically a prime age range for homeownership – were credit eligible for a mortgage. Just 36% of renters under 44 years old had a VantageScore® 3.0 credit score below 580, a common benchmark used by some institutions to determine whether a borrower qualifies for a low down payment loan.