More Homes Becoming Rental Housing

There are more than five hundred large and midsize cities that are seeing a rise in the number of homes being rented instead of being owned due in part to the aftermath of the recession and housing market collapse. Over the past five years, there have been over four million homes lost due to foreclosure, which is why many homes there were owner-occupied are now rental homes. This shift from owning a home to renting a home has the potential to be long lasting and may be how people are going to be able to build wealth.
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Of the one hundred largest cities looked at the ones with the largest shift from owning a home to renting homes were as follows from 2000-2010.

  • Irvine, California from forty percent to forty nine point eight percent
  • Philadelphia, Pennsylvania from forty point seven percent to forty five point nine percent.
  • Birmingham, Alabama from forty six point three percent to fifty point seven percent.
  • Reading, Pennsylvania from forty nine percent to fifty seven point six percent.

There were also twenty five cities, which include Minneapolis, Baltimore, Sacramento, and Salt Lake City that went from half homeowners to the majority of the homes being rentals from 2000 to 2010. The most cities where the share of rented houses grew by at least five percent were in the states of California, Arizona, and Florida. In a nationwide figure from 2000 to 2010, rental homes went from thirty three point eight percent to thirty four point nine percent.

 

Housing price collapse: why it’s good news that more Americans are renting …
Slate Magazine, on Tue, 31 May 2011 14:52:16 -0700

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Fox Business, on Tue, 31 May 2011 14:40:11 -0700

They’ve seen what’s happened to family members and friends who bought homes that have lost their value.” The shift in sentiment away from buying amounts to a nearly complete reversal of the sentiment just five years ago, when the rental market suffered 

 

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ABC News, on Tue, 31 May 2011 14:25:09 -0700

As that income stream changes, you can get out of your current situation and get into a cheaper one, or if it ramps up you can get into a more expensive rental home. But with a mortgage, it’s harder and more economically costly to make those types of 

 

Now Renting: Luxe Condos Built for the Global Rich
Memphis Daily News, on Tue, 31 May 2011 14:13:14 -0700

Still, in nearly three quarters of cities, it is cheaper to rent than to own, according to Moody’s Analytics. These factors have helped push home ownership rates to a 10-year low; 66.4 percent of Americans own their homes, down from a record 69.2