Recent survey data by Freddie Mac further suggests that in the minds of many Americans renting is cheaper than purchasing a home. As more people look to renting over ownership landlords and property managers will see increasing opportunity for improved rental income, but should note that tenant screening laws and policies must be complied with; and working with a well-qualified tenant screening agency remains a best practice.
A recent report by Freddie Mac suggests that more Americans than ever before see renting as a cheaper option than home ownership. However, is renting really cheaper than purchasing a home?
From a recent Wall Street Journal posted article, October 16, 2018.
More than three-quarters of Americans now view renting as more affordable than owning a home, the latest sign that rising mortgage rates and higher home prices will continue to pressure home sales.
Some 78% of people now say that renting is more affordable than owning, according to survey data to be released Tuesday by mortgage company Freddie Mac. That is up 11 percentage points from only six months ago. wsj.com/articles/big-jump-in-americans-saying-renting-is-cheaper-than-owning-1539705295
There is evidence across the country of this trend.
In Springfield, Missouri renting had seemingly become the preference.
From OzarkFirst.com (Oct 17, 18):
According to a study by marketplace.org, renting and not owning is the preferred choice for people living in Springfield.
54.4% of people rent compared to 43.6% of people who are homeowners.
Of the nearly 140,000 households in Springfield, about 78,000 of them are renting compared to about 61,000 who own.
Over the past two years … has seen Springfield turn into a seller’s market for people looking to buy a home then rent it out or better known as investment properties. ozarksfirst.com/news/more-people-choose-to-rent-not-to-own-in-springfield/1531904141
However, there are alternate opinions regarding ownership versus renting.
David Bach, noted money expert, suggests three reasons to rent in a recent interview on CNBC.com (Oct. 25, 18):
1. You’re not staying put. “If you think you’re going to move in the next three years, you should not be buying a piece of real estate,” says Bach.
2. You’re not sure about your job. If your employment situation isn’t stable or you’re living paycheck-to-paycheck, don’t buy a home, says Bach.
3. You plan to have children and might need more space. “If you know you’re going to have kids and you think that will lead you to needing a bigger place, don’t rush and buy a small place. A growing family could require you to move in a few years,” says Bach. cnbc.com/2018/10/25/david-bach-explains-when-you-should-rent-a-home-instead-of-buy.html
Regardless the reason to rent or not to rent, by all appearances rental demand continues to increase. And with the increase in rental requirements landlords and property managers should work with a well-qualified tenant screening agency in order to stay fully compliant with law.
A professional tenant screening agency can provide the necessary tenant background checks to landlords and property managers as well as to assist them in creating compliant tenant screening policies which help them avoid discrimination.
To learn more about why renting may be a better living solution than purchasing a home and why maintaining proper tenant screening policies is extremely important read recent TenantScreeningUSA.com press release: Is Renting Cheaper than Purchasing a Home? Tenant Screening Could be Changing; Opines TenantScreeningUSA.com