More Rentals, Due to Unaffordable Housing

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A report set to be released on Thursday, shows un-affordable housing prices keep some people in rentals, rather than a place they hope to own.

On Wednesday, the National Realtors Association said home sales jumped up 5.5 percent last month. But experts say in last five years home values have risen by 40 percent, while people’s income has only gone up 12 percent. Home prices are up and it’s leaving potential buyers feeling left out.

“So this great mismatch by home price growth and income growth is bringing additional challenges to people who are renting and wanting to convert into ownership.” chief economist, Lawrence Yun.

Affordability isn’t the only factor, especially among millenials. Many say lifestyle is driving their decision to rent rather than own. It gives them an option to live in areas where they wouldn’t be able to afford buying a house.
 

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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