Younger renters are optimistic, but barriers remain despite new credit tools
Nearly half of renters in the United States expect to buy a home within the next four years, according to new research from global data and technology company Experian.
The online study, which surveyed 2,005 non-homeowners across the country between May 15 and May 20, found that 47% anticipated purchasing a home by 2029, and 67% think they’ll do so within eight years.
Gen Z and millennial renters were especially optimistic, with 48% and 50% respectively believing they would be ready to buy within five years.
This optimism comes as the mortgage industry shifts. The Federal Housing Finance Agency recently approved VantageScore 4.0 for mortgage decisions. The new model uses alternative data, like rent payments, which could help renters with thin credit histories.
However, barriers to homeownership persist. Sixty-seven percent (67%) of renters cited saving for a down payment as a major obstacle, while 66% pointed to high home prices and 51% to low credit scores.
Nearly a quarter of respondents said they had been denied a mortgage or rental application due to their credit score.
“We know today’s renters are hungry for more knowledge, with many turning to friends and family and online resources to improve their understanding of financial concepts,” Christina Roman, consumer education and advocacy manager at Experian, said.
The inclusion of rental payments in credit reports is not new, but its adoption is accelerating.
Industry experts have long argued that alternative data could help close the homeownership gap, particularly for younger and minority borrowers.
“For me, it’s about going out there and hosting homebuyer events to educate, getting into the communities, to teach consumers, as opposed to business-to-business,” Adams told Mortgage Professional America.
“Teaching consumers about the availability of down payment assistance programs was a big thing for me, and it was eye-opening to learn that it's not just the consumers, it's also realtors and brokers.”
Fintechs and nonbank lenders are leveraging expanded data sets to reach underserved markets, though some analysts warn that broader access does not automatically translate to affordability or financial stability.
For renters looking to improve their prospects, Experian recommends monitoring credit, ensuring rent payments are reported, and building financial knowledge.
As the market evolves, the ability to leverage alternative data may become a standard part of the mortgage process—but for now, the path to homeownership remains challenging for many.
The Experian survey results came in the wake of Clever Offers study which revealed that 53% of Americans doubt they’ll ever own their dream home. Meanwhile, according to the Knightvest Capital’s latest Multifamily Renter Sentiment Report, a growing number of renters choose to stay put and embrace apartment living as a long-term lifestyle.
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