Amex Spending Tracker Shows Renting at Five-Year High
Springtime is the season for house hunting, but many people planning to move this year say they’ll rent, not buy, their new digs.
The American Express Spending & Saving Tracker surveyed 1800 adults in February 2016 and found that 17% of them plan to move sometime this calendar year. More than half—53%–said they would look to rent a house or apartment rather than buy a new place. That’s the highest number of prospective renters since American Express started polling people about this subject in 2012.
Last year, 46% of movers polled by Amex said they were planning to buy a home; this year only 40% said they’d be looking to close on a home purchase.
The decrease in buyers doesn’t necessarily signify a downturn in the economy, said American Express officials. “In general, Americans are feeling confident about the economy and their own financial stability, yet they’re buying fewer homes,” said American Express VP of Consumer Lending Jed Scala.
So what’s the reason for fewer mortgage applications this year? Scala said it could be indicative of “a shift in the cultural mindset—especially among Millennials—who value flexibility and freedom.” Scala said young people might see home ownership as suffocating, and runs counter to their desire to be footloose and fancy-free.
Millennials on the move
They might not be ready to buy homes, but many young people are moving this year. One-third of Millennials surveyed said they’d be packing up moving boxes in 2016. Fifty-five percent of them will be renting a new place, and 41% are looking to buy; about the same as last year. Thirty-two percent of Millennial respondents said they thought the housing market would be better for buying one or two years down the road.
In contrast to the peripatetic Millennial demographic, only 15% of Generation X respondents said they planned to move this year, and 10% of Baby Boomers. This could be due to more Millennials undergoing big life changes like getting a first job or having a baby. Older people tend to be more settled—though more Baby Boomers could be moving as their kids move out and they have an empty nest.
Home improvements instead of moving
Folks who aren’t moving, are improving. Seventy-six percent of those polled said they’d be shelling out for some significant home improvements this year. And they plan to spend more than last year; an average of $5,100 this year, versus $4,100 in 2015.
Latest Other Card News
A student loan refinancing typically involves taking out a new loan to pay off your existing debt. Refinancing student loans can potentially lower your interest rate, fees, or/and allow you to get better repayment terms, helping you save money. However, it is important to consider whether your loan is private or federal and what benefits […]
2020 has definitely been a very unusual and challenging year. Many of us have been waiting for its end more than ever. And now, when there is less than a week left until the beginning of the new year, it’s time to sum up the outgoing one and find out the results of the annual […]
Walmart is finally ready to introduce a new subscription service offering free same-day delivery and fuel discount. Walmart+ was supposed to go live back in July, however, it was delayed due to the COVID-19 outbreak. Now the launch is planned to take place on September 15. The new product will help you order any goods […]
This month, American Express introduced its new tool called MyCredit Guide. The Amex website says: “We believe everyone should know their credit score and have the tools to understand it better.” That’s why the new feature was developed. Using the tool, you can find out your credit score and take a look at your credit report, […]
A virtual credit card is a unique credit card number that is linked to your main credit card account but is different from the physical card number. The virtual credit card number allows to shop online or over the phone without using your physical credit card. The numbers can usually be used once and expire if not used. The cardholders can also delete the numbers if they want or need to.