4 Reasons Why Americans Are Choosing Rentals Over Homeownership

Let’s face it: homeownership levels has hit rock bottom this year with the figures being the lowest ever for the last 18 years. In other words, more Americans are interested in signing a lease rather than a deed.

Experts believe that this trend might continue until homeownership rates rebound in a few years. So, with that said, here are 4 reasons why Americans are choosing rentals over homeownership:

#1: The Effects of the Foreclosure Crisis

Even if the foreclosure crisis is behind us, that doesn’t mean it isn’t affecting the market anymore. People who are victims to this crisis will definitely think twice before making any choices related to owning a home while others who still want to try again can’t because lending is so tight.

#2: Investors have changed it all

A number of cash-rich investors have bought homes on the cheap and then rented them out to make a profit during this time while others have become ‘accidental landlords’ in moving out of their first homes to a second. All in all, almost four million homes are now available for rent giving people more options than ever compared to homeownership.

#3: Fresh college grads prefer renting a home first

In 2012, almost 36 percent of 18 to 36 years olds continue to live with their parents, thanks to a lack of employment opportunities as well as soaring student debt. These figures are the highest since the last 40 years. Even though they will move out eventually, there’s no doubt that they will rent a home first before buying.