USA Becoming a Renters Nation?

Approximately 35% of Americans are renters. What are some possible reasons for it? Is it a positive or negative fact? Does it create new opportunities for the real estate business? Let's discuss the questions below.

Reasons for renting:

Affordability - Home prices are increasing quicker than wages. According to Zillow, the median home value is $247,084, which is about 4% more compared to the last year, and as Zillow predicts, it will increase 5,1% within the next year.

According to the statistics, there is no surprise that lots of people cannot afford the increasing home prices, and the only option is to rent the house. Even renting is challenging for many people. They found themselves unable to save enough money for buying. If the home prices tend to go up drastically in the future, even fewer will afford to become homeowners.

Mobility - The sacral status of the "American Dream" has changed. The new generation is becoming more mobile and more creative. They can't stay in the same workplace for a long time, but instead, they choose to relocate and travel more. They are always open to new opportunities and are even riskier. Those young people favor renting over the paying hundreds of thousands of dollars buying a house. They might be exploring all possible places as well. Once they find themselves comfortable and become convinced that they like the current space, they will purchase it.

What are some new opportunities for the real estate business?

The fact that a considerable part of the Americans is still renting houses creates new possibilities for the real estate industry. There will come a time when those people will require to buy their own homes. A 35% demand on the market is attractive and should encourage more people to get involved in real estate commerce.

Summary

Renting tendency benefits proprietors more than tenants, but gives the freedom for youth to see and explore more. At the same time, it creates an alert for the real estate industry to produce more and fulfill the demand on the market in the upcoming years.