The recession and shifting demographics will grow the ranks of people who will rent, not buy, housing over the next five years. By 2015 the % of home ownership will fall to 64%. We haven't seen this level since 1993-94.
The flip side of this trend is a rising rental rate, which probably will hit 36% by 2015, versus 32.8% in 2004. So roughly 10 million extra folks could be moving into rentals over the next five years.
One of the reasons more young people will rent -65.6% of bachelor-degree recipients held an average of $23,300 in student debt by 2007-08, with both figures setting records. The burden of student debt is not likely to prevent young people from getting married and having households after graduation and finding jobs, it will take away their ability to get a mortgages.
What this could mean for the investor is huge. We are already starting to see good rentals renting in a matter of several weeks. This one in Parkside West rented in 5 days for 1340.00 a month
Cynthia White Realtor EXIT ISLAND & BEACH REALTY 321.652.1974 Direct
Search the MLS http://cwhite.islandandbeachteam.com/
Cynthia White is a Realtor located in Brevard County, Florida with EXIT Island & Beach Realty. She is currently helping buyers, sellers and renters find the homes and properties of their choice. She can be reached at 321.652.1974 Direct, or via email at cwhitesellhouse@yahoo.com
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