Renters On the Rise-Will Prices Rise Too

According to an article in CNN Money, more people are renting these days than buying a home.

The article goes on to say how the government has always pushed homeownership as a civic duty. The American Dream. With the current state of the economy it seems many are thinking twice about buying.

I can’t agree more. Now that we are renting instead of being a homeowner, we’re finding it much more affordable. We lucked out though, we found a great home at a very affordable price. When I run our rental on Zilpy.com, they’re estimating that we are paying about $200.00 less than we should be.

With more people in the market to rent homes these days, one could reduce that with more demand that there will less supply. And when that happens rental prices usually go up. Fortunately in California there are renters protections laws that limit the maximum a landlord can increase the rent on an annual basis.

The article also mentioned that home ownership was always considered a smart investment. These days that just isn’t true…

…Instead, for the past four years, ownership has been a culprit of distress. In June, one in every 411 housing units received a foreclosure filing, according to RealtyTrac Inc. Between 2006 and 2009, home prices fell more than 32%, according to the S&P/Case-Shiller Home Price Index.

To read the full article go to CNN Money.