Recently, there has been a noticeable decline in home ownership. Nowadays, families are renting their places instead of buying a property. Not only is this a favorable option for those looking for homes, but this also means raking in loads of cash for single-family rental companies.
What influenced these changes in terms of home ownership? AmericasHousingAlliance.com suggests that there was a major shift in the demographic because of the rise of the millennial generation, as well as minority groups.
The Decline of Home Ownership in the United States
The decline continued until the second half of 2015. The country, dropping to its lowest ownership rate since 1967, had a rate of 63.5 percent. The drop was evident because from 64.7 percent in the second half of 2014, it went down to 63.8 percent during the first quarter of 2015.
The Rise of the Concept of Renting Over Ownership
Along with the increase in millennials, there is also the problem of not being able to afford a home. A majority of them may rent instead of buy because their savings and income are too low, or their debts are too high.
As we know, there is more to buying a house. Many things are up for consideration, such as repairs and renovations, which can be expensive. Though these can increase the value of the property, in the end, the buying price may double just by considering the miscellaneous expenses.
Many also choose to rent because they think it is difficult to obtain a mortgage. Research suggests that the way a person perceives ease of credit access influences the probability of buying.
The Significant Increase of Single-Family Homes
According to a report published by the Joint Center for Housing Studies of Harvard University, there was a conversion from owner-occupied single-family homes to rentals. This is because of the surge in single-family developments during the 1990s and the 2000s. The shift from owner-occupied to rentals also helped stabilize for-sale markets, especially those in the Sunbelt metros.
If you are looking for a house for you and your family, try renting one instead of buying. With the increase in the number of rental single-family houses, surely you will find one that fits your budget.