National Attitude Toward Renting Improves
High apartment occupancy rates and other signs indicate the nation is moving toward a future different from the one previously expected, according to The Fiscal Times.
That future will be one in which more Americans prefer to rent their homes rather than own them, if current trends continue. The homeownership rate has dropped from 69 percent in 2006 to 62 percent, according to a report from the New York Federal Reserve. At the same time, rising rents and low mortgage rates have not put a damper on apartment demand or encouraged a shift toward homeownership.
Some experts believe the change will continue and be a beneficial one for the nation. They cite evidence that homeownership is, financially speaking, often a less sound investment than the stock market, and note that it can effectively force the owners to stay in one place, or at least discourage mobility.
One economist wrote that, because the economy requires mobile workers and benefits from flexibility, high homeownership rates can be detrimental on a large scale. The news source indicates that some experts expect the trend to continue, especially if federal incentives that support homeownership are decreased or removed. Rental managers will likely see a surge toward rentership if that occurs, some predict.
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