Thursday, May 17, 2012

The New American Mantra: "Be It Ever So Humble, There's No Place Like a Rented Apartment"

In this week's Wall Street Journal -- there was yet another write up of the strength of the rental market across the nation. The article cited a new study released Tuesday by the Demand Institute division of the U.S. Conference Board. The 50 page report cites these factors:
  • The first stage of this recovery will be led by rental properties.
  • Past homeowners who lost their houses to foreclosure
  • Young adults who are now living at home or who haven’t saved a down payment.
  • New immigrants will drive the demand to lease rather than to buy.
And as a result, we're already seeing a shift to multifamily construction. Meanwhile, speculators hoping to cash in on increasing rents are buying up vacant properties with an eye to leasing them.

Download the full study entitled "The Shifting Nature of U.S. Housing Demand" here.