Do You Believe that Renting is Replacing Home-Ownership In the USA?

After one of our investors closed on a rental home today, he met with me in my office to discuss his next purchase which will be in December.  He went into detail about his research in real estate market trends.  He strongly believes that we are going to become a nation of renters rather than a nation of home-owners.  He is cashing in and putting his money into rental units and has already purchased several.

Could this be true?  It is difficult for me to believe that anyone would rather rent than purchase their own home.   I've rented and worried about whether to even put up a favorite picture.  I certainly wouldn't choose renting over home-ownership!  He says people with cash are actually choosing to rent. 

With prices and interest rates this low, I can't imagine actually choosing to rent.  Why not buy while your monthly payment could even be lower than your rent?  Rents and prices of homes go up over time.  If you own your home, the monthly payment stays the same as long as you get a fixed rate.  Why worry about rents going up?

I have a large family.  If we had chosen to rent rather than buy, we would have had to rent a larger and larger home as the family grew with larger and larger monthly rents.  Instead, we purchased our home, had a reasonable monthly payment and built enough equity to sell and buy that larger home with a similar payment thanks to our larger downpayment from the equity in our previous home.

I do agree that now is a great time to purchase rental homes because the rent can cover the payment thanks, once again, to the low interest rates and home prices.  It's nice to let someone else purchase your home for you!

I'd love to hear what you believe about becoming a "nation of renters."  Please call Janet-Naisbitt-Bagley at ERA Realty Center at 435-865-1019 or email naisbitt@infowest.com.  You can also call toll free at 800-934-3742.

Please call Janet's team at 435-865-1019 for help with all your real estate needs whether buying or selling.  I love referrals also!  We'll work hard to help you get the results you desire!