March 11, 2009
– Comments (5)
This was obvious a year ago, that houses would be better utilized by their owners and have more people living in them, and with that is downward rent pressure...
"These calculations imply that, as a result of the collapse of the housing bubble, millions of middle class homeowners still have little or no equity even after they have been homeowners for several decades."
Buying is just renting, but you have to replace your own appliances when they brake.
I posted a blog a few days ago about why currently renting is still better than buying. Hopefully that statistic will change. In the meantime I'm going to enjoy my nice 1 bedroom.
Interesting article but how do you figure it relates to downward pressure on rent? Less people will be able to own and will need to rent.
@barich1: but many people (including flippers) are "stuck" with properties they really want to sell, but they are waiting for the market to "recover". In the meantime, they rent (until they are foreclosed upon). Also, children start living with they parents instead of renting, or renting among a group of people becomes more common.
barich1, when people are renting rooms in homes and doubling up in homes that huge overhang of empty homes stays big and people that need to rent reduce their price.
Part of what happened for decades was few people per home and that means more homes are needed, more demand. When you go the opposite, fewer homes are needed, less demand.
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