American’s are redefining the American Dream. For many owning a home of their own is a thing of the past. Leasing/renting may be the New American Dream. Since many Americans either can’t afford a down payment for a new home or their credit score won’t allow them to take advantage of the lowest interest rates in 30yrs. Americans are looking for alternatives. While investors pick up as much property they can with all cash offers either for flips or rentals. This could have a large potential for flooding the market with even more lease & rentals driving lease & rental prices even lower. Making leases and rentals a very attractive alternative for potential buyers.
The appeal and pull of leasing/renting will be a serious hazard to the return of new buyers to the housing market. There has been a change in the consumer’s attitude. A good example of this was written in this March 2010 post on a Zillow advice thread:
"We cannot wait to rent and walk away from this upside down/underwater bad investment. And while we go through the process (foreclosure) 6 to 8 months, we will be socking away the $2600+ mortgage payments preparing for our rental. Even $1500.00 for the rental of a home as nice or even nicer is $1100.00 per month ahead. Just think, no property taxes, no HOA dues and when something goes wrong, call the landlord. We can handle the credit hit. Currently we have about 840 FICO. The way things are going we will be able to save enough cash to just buy a house in a few years."
American’s have always found a way to reinvent themselves, their ideals and their dreams! I’m sure they will continue to do so. What is your American Dream?
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