Categorized | Residential

Homeowners Not Likely to Be Overcome by Renters

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As the residential real estate market continues its tremendous slump in the United States, the talking heads have suggested that the country may soon become a nation of renters. However, the most recent data indicates otherwise.

While the number of renters in the United States has certainly surged in recent years due to struggles in the housing market, there is little incentive for the general public to opt to rent instead of buying a home. In their analysis of the most recent financial and survey data, residential real estate experts found that there are still far more benefits that come from owning a home, even in the weakened housing market.

One of the biggest arguments against buying a home that has been referred to throughout the year is that the monthly costs of homeownership are generally greater than rent prices. If all the money saved by renters were invested, renters would clearly come out ahead. Analysts have found validity to that argument.

However, if any of the money were spent instead of saved, it would then put renters at a disadvantage in comparison to homeowners. In such a case, it would make investment and financial sense to own a home. Because the majority of renters do, in fact, spend at least some of the money saved, renting then becomes a less logical option in terms of investing and building self-worth.

Those figures are especially true in today’s residential real estate market, as home prices are more affordable than ever. With that said, analysts now believe that while the housing market may continue its downward trend for the coming months, it is highly unlikely that renters will overtake homeowners in terms of sheer volume.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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