Cost-of-living crisis pushes renters further from homeownership

The impact of the cost-of-living crisis has reduced renters’ aspirations to own their home, according to a new report.

A survey by firm MRI Software reveals a staggering 80% of renters feel priced out of the housing market.

Nearly half of younger renters aged 18-24 (48%), say they are still continuing to live with their parents due to rising costs.

Home ownership out of reach for many renters

According to the report, more than 33% of renters say they have abandoned home ownership altogether.

Dan Foryszewski, director for residential investor solutions at MRI Software, says affordable housing is key to helping young people get on the housing ladder.

He said: “The latest research from MRI Software reveals a significant shift in renter behaviour, with affordability and financial pressures pushing the aspiration for home ownership further out of reach for many.

“A significant 80% of renters feel priced out and a growing number are choosing to rent long-term which is why the need for affordable housing solutions has never been more important.”

Renters prefer digital communications with their landlord

The report also reveals that the preference for city living among renters increased to 33% in 2024, up from 25% in 2022.

MRI Software notes that this shift suggests a decline in the desire for rural living following the pandemic.

According to the report, 60% of renters prefer self-managed digital communications with their landlord. However, the uptake of resident portals is extremely low when compared with telephone and email communications.

Only 8% use this method to track and report maintenance issues and less than 2% of renters use it to send and receive messages.