Rent vs. Own Ratio to Flip in 2011?
Many Americans are content to rent after witnessing the crumbling housing market in recent years. But with rents on the rise and home prices continuing to fall, a reversal is in sight.
Palm Coast, FL – January 7, 2011 – It wasn’t hard for many homeowners to bid adieu to 2010. It was the year where, in many metropolitan areas across the country, rents surged as home prices fell, leading a growing chorus of skeptics to question the so-called American Dream of homeownership.
Perhaps not surprisingly, it makes more financial sense to rent than buy today in many U.S. cities, according to the latest data from Moody’s Analytics. After declining during the depths of the latest recession, prices for rentals nationwide increased modestly by about 3% in 2010, partly driven by a record number of homeowners looking for new digs after foreclosing on their homes. In Moody’s latest list of rent ratios (which is the price of a typical home divided by the annual cost of renting that home) for 54 U.S. metropolitan areas, 39 fell into the ‘better to rent’ category — roughly the same level it’s been for the past year.
Read More >>>> Fortune [CNN.Money.com]
Older renters, younger too
With many younger not making enough to buy, renting is the only way. That is also what older singles see as easier too. The days of investing in a home as an American dream are over. Now it’s time to waite for better days, if they ever come, when jobs return for many and homes increase in value again. The older will not want big houses, nor will they younger who can’t afford to marry and have families. The smartest thing this country could do is to open the borders to the world and let in all that will come, it will bring back demand for products and homes.
Open the Boarders
To the comment to open the boarders and let all in to raise the supply and demand on houses and products. Are you crazy? That would destroy the very few jobs available we have left. I cant afford to work for $7.15 an hour. We would lose our jobs to those willing to work for less.