Home ownership may be a part of the American Dream, but the housing market has struggled for several years leaving current owners without a home. Those who wanted to buy are now renting in hopes that the housing market will improve. Those who are already renting are choosing longer term leases. Renting is on the rise and it is no longer considered a bad thing. There are about 39 million rental households in the U. S. That number is expected to increase by 3.6 million by 2020.
An annual report from the Harvard Center has stated that “millions of homeowners have mortgages larger than the value of their homes”. Many of these homes have been turned into rentals. These homeowners have chosen to rent out their homes because they lack the finances to pay their mortgage. Even though there are more rental homes available, the demand for rental properties have not been met. The need for rental housing may provide a boost to the nation’s economy.
The rental market is expected to continue to do well because of apprehensive house hunters. Homes are appreciating at a much lower rate. Many consumers do not have much confidence in the housing market or the economy. Even with the decreasing cost of buying a home, it is a lot harder to meet the standards of qualifying for a loan.
The prime renting age is said to be between the ages of 18 and 34. This age group is referred to as the “Echo Boomers.” Some newer apartment complexes are changing their looks to attract these young renters. These new urban apartments have a smaller living area, but they sport large common areas for entertainment and socializing. Some of the amenities include resort-style pools, poker lounges, private movie rooms, and a banquet room.
Some people have no other choice but to rent. Their lack of finances to make a mortgage payment or to produce a down payment would lead them to rent. They may also have poor credit that prevents them from getting a home loan. Renting, however, can be a good thing in this situation. It will allow people the opportunity to put money into savings to use as a down payment. They could also use this savings on other investment opportunities.
Renting is also more convenient. A person can easily move from one place to another without having the worry about what to do with their property. Also, when renting, if there is a problem with an appliance or even the plumbing, a renter can call their landlord to fix it