For the past few years, the U.S. housing market has seen some considerable improvements. Home values are on the rise, foreclosure rates are down and many homeowners are regaining equity after suffering from the post-recession slump. But what about the rental housing market? With such impressive gains in the home sales arena, is it safe to assume that rental demand will fade? One source says no – that, on the contrary, rental demand may see some spikes throughout 2013 and may continue to move higher in the coming decade.
According to a Jan. 2 article from Realtor.org, five to six million new renter households are slated to pop up in the next 10 years. This rise in rental demand is considered to be the result of low inventories of available homes and tight credit conditions. While it’s true that most mortgage lenders have tightened their purse strings in the aftermath of the housing crisis, that’s not to say that qualifying for a home loan is completely out of reach. For certain population segments such as single-income or low-income families, renting may make more sense than a home purchase, but it’s certainly not an impossibility. Still, with the nation coping from the financial setbacks of recent years past, it’s not surprising that more people are having a harder time saving for a down payment or repairing their credit. [Read more...]