- Real estate website Zillow reported that, in the country's largest housing markets, nearly 14% of renters with good credit and who can afford to buy a home are passing on homeownership.
- Many younger renters are putting off a family and children, delaying their need for a home, and hot job markets are attracting well-paid renters who take their time before deciding to buy in the area.
- While the markets with the lowest homeownership rates tend to have high numbers of qualified renters, metros with extremely tight inventory also have a high number of people with the income and credit to buy a home but who just can't find one.
Zillow added that markets most seriously affected by the housing crash have very low numbers of qualified renters. Additionally, in a few markets renters with good credit don't make enough to buy a home.
When faced with hurdles of high prices and low inventory, first-time homebuyers are renting longer than ever before even if they are qualified to buy.
According to a Wall Street Journal report earlier this month, affordability is still the culprit keeping homeownership out of reach for many Americans. The continuous rise in home prices— combined with bad credit, student loan debt and strict lending criteria — is preventing 200,000 to 300,000 household each year from buying a home. This has contributed to the lowest homeownership rate in 51 years.
As rents and home prices rise, the inability for renters to save for a home could create a permanent renter class that gives up on homeownership.
For more information on apartments in Mooresvile, NC contact Abberly Green.