Renting is the new owning . . .
Web Admin - Wednesday, February 22, 2012
Some statistics to consider:
BMG Rentals as a property management company has seen record growth in Idaho Falls and Salt Lake due to positive factors affecting the rental industry.
In previous years, it was embarrassing to say you rent. Today, in some cases, it is embarrassing to say you own. According to the US Census Bureau, the U.S. home ownership rate has fallen about 1.5% over the past year (from 66.9% to 65.9%). For every 1% drop in the home ownership rate, it represents approximately 1 million new renters entering the rental market.
In some cases, home-ownership rates have fallen below some European countries. Italy for example, has an 84% home-ownership rate. Along with Spain with a 78% home-ownership rate.
High unemployment rates, difficulty in getting financing, changing demographics and increased foreclosure rates are adding to the deceleration of home-ownership. In 2011, there was a 4% increase in the amount of renting households compared to 2010.
In the United States, home-ownership is the least in states like California (56%), New York (54%) and Washington at (64%). States with the highest home-ownership rates are Michigan (75%), Mississippi (75%), South Carolina (75%) and West Virginia at (79%).
Rental vacancy rates dropped to 5.6 percent in the third quarter of 2011, down from their record high of 8 percent in 2009, according to Reis Inc. This increase in rental demand is putting upward pressure on rental prices throughout the United States. As more foreclosures and new apartment buildings enter the market, the rental rates should stabilize and reach equilibrium.
Renting is the new buying and this trend doesn’t seem to be slowing down anytime soon.