Over 35 percent (35.1) of tenants were previously homeowners, according to a survey by Apartments.com conducted in the 4th quarter of 2012. This is a fairly significant increase from a year ago when 33.6 percent of tenants reported they were previously homeowners. The most common reasons given for the change from homeowner to tenant were affordability and the flexibility in location. While it was just 5th on the list, it is worth noting that the loss of a home due to foreclosure or divorce increased nearly 90 percent in the past year as a reason for converting from homeowner to renter.
Top Five Reasons Why Previous Homeowners Now Rent:
- Renting is a more affordable option: 22.2% (down from 26.3% in 2012)
- Flexibility renting offers in choosing where to live: 15.7% (down from 21.2% in 2012)
- Can’t afford to keep up with the expenses associated with homeownership: 14.2% (up from 10.5% in 2012)
- To relocate for employment: 13.3% (down from 20.5% in 2012)
- Lost home due to foreclosure or divorce: 11.2% (up from 5.9% in 2012)