Tenants were showing more financial optimism in Freddie Mac's recent renter survey, with more renters saying they can afford their current home and expressing confidence in their financial situation. However, renters were also less likely to want to purchase a home or expect that they'll be able to afford one.

"It would appear from our new survey that renters today feel better about their finances, like where they are living, and view renting favorably," said David Brickman, executive vice president of Freddie Mac Multifamily. "This is consistent with findings from earlier surveys that show a steadily growing number of renters have a positive view of renting."

Forty-one percent of renters in the survey said they have enough money to last beyond each payday, up from 34 percent in the last survey published in September 2016. The share of respondents indicating that they are unable to afford essentials was down 6 percentage points to 14 percent. Forty-five percent said they earn enough to live paycheck to paycheck, showing little change from the last survey.

Rural renters and those in the baby boomer generation (defined as ages 50 to 68) were most likely to show higher financial confidence. Forty-six percent of rural households said they make enough to go beyond the next payday, up from 27 percent in September. Thirty-eight percent of baby boomers also described this financial situation, up 10 percentage points from the last survey.

Despite this response, respondents were slightly more likely than in September to say they would continue renting. Fifty-nine percent said they would rent their next home, up from 55 percent in the last survey. This share included 57 percent of suburban households (up from 48 percent in the last survey) and 73 percent of younger millennials between the ages of 18 and 24 (up from 64 percent).

Thirty-seven percent said they don't know when they might move from their current residence, up from 30 percent. The share of respondents who said they plan to move in the next two years fell from 38 percent to 33 percent.

Fifty-five percent said they like their current home and do not plan to move, even if rents increase – up 11 percentage points from September. This share included 60 percent of Generation X respondents (those between the ages of 35 and 49).

The largest share of respondents, 38 percent, said they would spend less money on non-essential items if their rent increased. Thirty-one percent said they would move to a less expensive property, while 29 percent said they would not make any changes to their lifestyle.

Fifty-two percent said renting was a good choice for them at this time, up from 46 percent in January 2016. This share included 38 percent who said they can't afford to buy a home but want to do so at some point and 14 percent who said they can afford to buy a home but consider renting a better option.

Fifteen percent said they can afford to own a home and are working towards it, down from 21 percent in January 2016. Fourteen percent said they want to own but don't think they'll ever be able to do so, down from 21 percent last year. The share of respondents indicating no interest in homeownership rose from 13 percent in January 2016 to 20 percent in the most recent survey.

Sixty-eight percent said they consider renting to be more affordable than owning a home, up from 65 percent in September. Sixty-one percent of respondents said they pay less than one-third of their income toward rent, although these respondents were more likely to be older. Forty-five percent of millennials (ages 18 to 34) and 43 percent of Gen X said they paid more than one-third of their income toward rent, compared to only 31 percent of baby boomers.

Baby boomers were also most likely to favor continuing to rent, with 77 percent considering it more affordable than homeownership. Sixty-seven percent said they expect to rent their next home, and 32 percent said they have no interest in owning a home.

Gen X respondents were most likely to show interest in homeownership, with 38 percent saying they believed it would be more affordable than renting – the highest share among all generations. Fifty-one percent of renters in this age group said they plan to purchase a home for their next residence.

Older millennials, between the ages of 25 and 34, also showed increased interest in homeownership. Half of the renters in this age group said they plan to purchase their next home.

Rental satisfaction was down slightly in the latest survey. Sixty-two percent said they were moderately or very satisfied with their rental experience, down 4 percentage points from September.

Freddie Mac's latest renter survey was conducted in March by Harris Poll. The report was based on responses from 1,282 renters.