The new American dream: Leasing your house
Source: The Orange County Register
In Southern California, detached, single-family rentals increased 29 percent over the last decade — vs. a 13 percent increase in apartment units, according to the most recent U.S. Census data.
Making sense of the story:
• The tally jumped to 736,400 rental houses in 2016, equal to one out of every four houses in the region. The increase matches trends elsewhere.
• California had a 27 percent gain to 1.8 million rental houses in the most recent decade. Across the nation, detached, single-family rentals jumped 30 percent to 12.5 million in 2016.
• Renters are moving into houses for space, for schools or for privacy, a recent survey by U.C.
Berkeley’s Terner Center for Housing Innovation found. Landlords, on the other hand, range
from small investors to gigantic hedge funds but also include retirees hanging onto their old
houses because they’re in high demand.
• The change could be contributing to a nationwide shortage of homes for sale. It also has
numerous implications for family wealth and for policymakers, since there now are 7 million
more renters in American than a decade ago, and nearly 414,000 more in Southern California.
• The Terner Center study found that while 80 percent of single-family tenants want to buy a home in the next five years, more than 90 percent have financial obstacles to buying.
• Nearly 27 percent of single-family renters who had been homeowners had lost a home to foreclosure. Other factors include student and consumer debt, difficulties in qualifying for a mortgage, or not being able to save for a down payment.
Read the full story: www.ocregister.com/2018/06/29/the-new-american-dream-leasing-your-house