Will Renters Save the Housing Market?
Recent news has been buzzing about how the market is improving, but it’s been a slow growth. Many are wondering what can give it the extra boost it needs to be completely healthy, and some are answering it with an unusual answer: renters!
Because homeownership rates fell in the past couple years, rental households have been on the rise ever since. Many potential homeowners prefer to continue renting rather than purchase their own home, making the demand for rentals on the rise. This has resulted in rental rates increasing more than 5% each year and investors are pouring their capital into American housing.
While new home owners may still be hesitant to enter the market until unemployment rates drop, investors who see the potential in rental homes are eagerly entering the market to gain some extra money.