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Rents Skyrocket to Highest Rate in Decade
An analysis by Market Watch revealed the cost
of rent was 3.8% higher than a year ago for the second straight month in
June.That's the strongest yearly price gain since 2007.
Source: Keeping Current Matters
Look For Shift Back to Homeownership, notes Tom Skahen,
New Homes CEO of Streamline Communities. As rental rates continue
to push up in the Northeast and mortgage rates trend down, start looking for
the shift from rental to homeownership. Since the great recession of 2007,
homeownership rates have dropped nearly 10 percent in the United States. CNN Money
reports that 110 million people in the U. S. now rent and 21 percent are
paying more than 30 percent of their total wages on rent, while homeowners
percentage of housing expenditure continues to trend down. This is not
sustainable, and we've hit a crossroads. There is going to be a shift back to
homeownership and that includes the somewhat non-existent Millennial buyer.
So builders, get ready for this demographic that's about to enter your
market.
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