More & More Renters

Green Escrow Services | Rent or Buy

According to a new report by The Urban Institute, “Headship and Homeownership: What Does the Future Hold?”, the number of renters is expected to increase in the next 15 years and may exceed home owners by 4 million in 2030.

The report estimates that the demand for new rental housing will cause a significant shift in the construction industry as attention is shifted somewhat from building new single family homes.

The report also predicts an increase of single family homes with renter occupancy in the coming years.

Finally, the report details a projected increase in the percentage of Hispanics owning homes and “Household formations are mostly expected to be driven among nonwhite populations from 2010 to 2020 with 77 percent of new households expected to be nonwhite.”

Buying a Home 25 Percent Cheaper Than Renting?

Green Escrow Services | Rent or Buy

The other day we cited a report that Bay Area rentals are at an all-time high. Now Trulia’s Rent vs. Buy report states that the cost of buying a home is 23 percent less than renting in San Jose and 25 percent less in San Francisco!

This report compares the total cost of buying versus renting, including rent, mortgage payments, insurance, taxes, maintenance, closing costs, and other expenses.

To Buy or Rent Redux

Green Escrow Services | Rent or Buy

Another voice heard from in the never-ending “buy-or-rate” debate, this time from Zillow. Their analysis points out that rising rents and low interest rates in the United States, skew the results in favor of buying after a mere two years!

Zillow goes on to point out that conditions for buyers and renters vary dramatically, even within the same city so all analysis must be broken down to the neighborhood level. Also, of course, rapidly rising prices in the home buying industry leave some would-be buyers no choice but to rent.

Zillow also factors in home equity versus renters’ investment as well as anticipated home value appreciation rates and rental prices in their report.