Nearly Half of U.S. Renters Plan to Buy a Home Within Four Years, New Study Shows

A growing number of American renters believe they are getting closer to homeownership. According to a new Experian study, 47% of renters say they expect to buy a home within the next four years, with Gen Z renters (48%) and millennials (50%) leading that optimism.

When the timeline is stretched to eight years, that number jumps to 67%, showing a strong long-term desire to transition from renting to owning even as affordability challenges continue.

Experian surveyed 2,005 U.S. adults online, releasing the results shortly after the Federal Housing Finance Agency (FHFA) approved the use of the VantageScore 4.0 credit scoring model for mortgage evaluations.

VantageScore May Help Renters Build Credit Through Rent Payments

One of the biggest changes in the credit landscape is the growing use of alternative data. VantageScore 4.0 includes rental payment history and other non-traditional financial information—making it especially helpful for renters who pay on time but may not have deep credit histories.

Experian is currently the only major credit reporting agency that automatically includes positive rent payments, operating the largest rental payment database in the industry.

“With modern tools and better data, we can help more renters become homeowners,” said Michele Bodda, Experian’s President of Housing, Verification Solutions, and Employer Services. “Positive rental payments are a simple but powerful way to make homeownership more accessible.”

Experian also announced it will provide VantageScore 4.0 at no cost to U.S. mortgage clients, a move expected to help lenders reach more credit-ready buyers and open the door for renters who have been overlooked under traditional scoring systems.

Renters Still Face Clear Barriers on the Path to Homeownership

Even with new tools and scoring models, renters identified several obstacles that make it hard to buy a home today:

• Down payment savings – 67%
• High home prices – 66%
• Low credit scores – 51%

The study also revealed that nearly 40% of renters feel unsure about key financial concepts tied to buying a home, describing their understanding as only “fair” or lower.

And while about 60% of renters have near-prime or better credit, Experian’s Rental Housing Market Report shows that 23% have already been denied for a mortgage or rental application due to their score.

Many Renters Want More Financial Guidance

When asked what would help them move from renting to owning, respondents said they need:

• Financial assistance or incentives (61%)
• A clearer picture of what loans they qualify for (51%)
• Better financial education related to homebuying (38%)

According to Christina Roman, Experian’s Consumer Education and Advocacy Manager, renters are eager to learn but often lack access to trustworthy guidance.

“Today’s renters are looking for reliable information,” Roman said. “Many turn to family, friends, or the internet. Our goal is to help them build confidence, understand their credit, and move closer to the dream of homeownership.”

A New Path Forward for the Next Generation of Buyers

The combination of new credit scoring models, rent reporting, and shifting consumer expectations could help more renters transition to homeownership over the next decade. While affordability challenges remain, renters’ long-term confidence especially among Gen Z and millennials shows a strong desire to buy when the timing and finances line up. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.