Fewer Renters Can Afford to Own–Great news for Landlords!

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Fewer Renters Can Afford to Own–Great news for Landlords!

buying_renting_homeAs real estate investors, opening up the Wall Street Journal can sometimes cause a panic attack.

But in June 2015, this article came out giving most investors a sigh of relief and even a tingle down their leg.

Spoiler Alert:  You’re going to make good money for a number of years to come if you play the market smart.

http://www.wsj.com/articles/new-housing-crisis-looms-as-fewer-renters-can-afford-to-own-1433698639

Here’s a few bullet points if you don’t have time to read the entire article (but please read it eventually…)

  1. The U.S. homeownership rate is below where it stood 20 years ago when President Bill Clinton launched a national campaign to encourage Americans to buy homes. Conventional wisdom says the rate, at 63.7%, is leveling off to where it was for decades before the housing-market peak.
  2. The declines reflect a surge of new renter households, which is boosting rents. Together with tougher mortgage-qualification rules, this will leave households stuck between homes they can’t qualify to purchase and rentals they can’t afford, says Ron Terwilliger, who spent two decades running Trammell Crow Residential, one of the nation’s largest apartment developers.
  3. A related concern is that qualified households will be unable to move from renting to owning as housing-cost burdens, slow wage growth and student debt make it more difficult to cobble together even a modest down payment.

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Interested in a FREE copy of the e-book Top 7 Tips to Maximize Rental Profits, simply send me an email and I’ll send over the link.  I’m at dan@polarismanage.com.


 

baldiniDan Baldini is the Founder of Polaris Real Estate Polaris Property Management, LLC and has been an Adjunct Professor in the College of Business Finance Department at Butler University in Indianapolis where he taught Real Estate Investing.

Dan focuses his practice on the residential real estate markets including Indianapolis, Carmel, Zionsville, Fishers and other surrounding areas. Dan continually seeks out new resources for Team training and education in order to keep all the Team members skills on the leading edge of real estate best practices. He is an active real estate investor himself, owning and managing a portfolio of investment properties in the Indianapolis markets.

A resident of the Northside area since 1979, Dan has extensive intimate knowledge and experience of the market forces that dominate the Zionsville, Carmel, Fishers, and Indianapolis real estate markets. He has been active in real estate since 1996 with a specific focus on North side properties. Dan is an active networker in his local communities as well as with top agents nationwide

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