Housing Preferences Shifting to Rentals
Researchers in California have been studying the housing market. Their findings reinforce what landlords have been witnessing over the past year or so: rental housing is on the rise as fewer people are interested in owning a home.
After the housing boom and bust, foreclosure crisis and impossible (for many) lending standards, younger people are especially cautious about owning a home. “I’d rather not be tied down,” said one 26-year-old.
Homeownership in California is expected to drop to 55% by 2020—the level it was in 1984. This is prompting officials to see what it needs to do to meet demands of future populations growth. Californians increasingly want to rent urban housing close to everything they need. With gas price hikes looming, more people want to bus, train, bike or walk to work, the grocery store and restaurants.
The California Association of Realtors said recently that only a third of homeowners who’ve sold their home are purchasing a new one—meaning two-thirds are renting.
For those in the rental property business, it looks like there could be plenty of opportunity ahead, if they can keep up with the demand.