Renting Homes a Trending Housing Market
All Seasons, LLC, CRMC can help you take that step from an apartment to home living. We are experts in this field, so you don’t have to worry about whether all your bases are covered. Your responsibilities will be clearly laid out, and the home you move in to will be spic and span so you don’t have to bother with additional work after the move. Visit our website to see our current availabilities at http://all-seasons.com/listings and get ready for your home-renting adventure!
Renting Homes a Trending Housing Market: In a November 8 blog, credit.com says that single-family home rentals are developing faster than any other housing market, surpassing both single-family home purchases and apartment-style living. “Almost all the housing demand in recent years has been filled by rental units,” says Sara Strochak of the Urban Institute. "Single-family rentals have gone up 30% within the last 3 years."
When Did this Trend Begin?
The housing bubble collapse and the recession that followed it changed Americans’ unquestioned desire to own a home. Today, single-family rental homes and townhomes make up 35% of the country’s 44 million rental units, compared to 31% in 2006.
Who is Leading this Trend?
Millennials are leading the single-family home rental boom. They’re not in a hurry to lay down roots, they have student loans and stagnant incomes, and are reluctant to commit to a 30-year mortgage. “While the age distribution of the US population suggests most millennials are reaching the age of household formation and demand for single-family homes, much of this demand is likely to be channeled into the rental market,” Strochak says.
But it’s not just young people. The over-55 crowd renting homes has grown by a whopping 28%. Since 2010, single-family rental households in the US went up by nearly 2 million. 1.26 million of those renters are 34 to 65-years-old, while just under half a million are older. In places like Miami, Houston, and Minneapolis, more than 2/3 of new single-family renters are over 65.
How did This Trend Begin?
The trend began with large firms buying up cheap homes during the recession and turning them into cash-generating rentals—often rented by families who’d lost their own homes or who could no longer qualify for mortgages. Institutional investors—like banks, hedge funds, and mutual funds, gobbled up millions of single-family homes that fell into foreclosure. But as prices recovered, small-time landlords now dominate the market. Investors who have fewer than 10 units own 87% of all single-family rentals, while investors who have only 1 rental unit dominate the market with 45%.
Should You Rent or Buy?
Renting a home can be a good step up from apartment life, and can serve as a good half-way step toward owning. You can test the waters, and make sure single-family home life is really for you before committing to a mortgage. This can give you time to enjoy your youth before you have to spend all of your free time on fixing up your home.
The main attraction to renting is obvious: you don’t need a large down payment to move in. Renting home makes sense if you are ready to live in a house, but not ready to pay the usual 20% down on a mortgage.
What Should You Know Before Renting a Single-Family Home?
While all rental transactions are similar, there are a few things you should consider before moving to a rental home. Utilities will probably be more expensive than they were in an apartment because you’re heating or cooling an entire home. There are also quite a few more maintenance requirements, particularly if there’s a yard. Gardening might seem appetizing if you are sick of your apartment, but it can be a year-round job, so make certain you’re ready for the extra work. Additionally, because you will inevitably have more possessions than in an apartment, it’s more important than ever to get renter’s insurance. Your landlord’s policy won’t cover damage to or theft of your personal property.
And remember--All Seasons, LLC, CRMC can help you take that step from an apartment to home living. We are experts in this field, so you don’t have to worry about whether all your bases are covered. Your responsibilities will be clearly laid out, and the home you move in to will be spic and span so you don’t have to bother with additional work after the move. Visit our website to see our current availabilities at http://all-seasons.com/listings and get ready for your home-renting adventure!
To read more about the new home-renting trend and read the original article, go to: http://blog.credit.com/2017/11/renting-is-overtaking-the-housing-market-heres-why-179687/