Pent Up Demand Not for Buying, Definitely for Rentals

Pent Up Demand Not for Buying, Definitely for Rentals

Take a look at any recent or even past marketing or market-related reporting coming from NAR, the National Association of Realtors, and you’ll find that it’s always a good time to buy a home. Right now with dismal sales, a lousy economy, and almost no first time home buyers anywhere to be found, just where is the “pent up buying demand” that the industry wants so much to promote? By promising that demand is about to spike, it makes some people feel safer in buying and expecting prices to appreciate.
Unfortunately, almost no data exists to support this theory. People aren’t buying or selling homes for a number of fundamental reasons:
• They’re insecure in their jobs.
• They’re experiencing wage increases below the inflation rate.
• College graduates aren’t finding the jobs they thought would be waiting for them.
• When graduates do find jobs in their chosen fields, wages are generally lower than they expected.
• Student debt is a monster that’s growing larger every day, making homes unaffordable for many.
• Millions of younger Americans who would have been first time home buyers in generations past are living with their parents or sharing rent housing.
In stark contrast to these negatives on the purchase front, there is plenty of positive data to support a continued demand for rental properties, both single and multi-family. Builders and investors certainly understand this trend, as multi-family housing starts are running up dramatically. Multi-family housing starts are nearing a ten-year high.
Home sales are languishing at around a third of previous normal levels. Though home purchases have bounced off the bottom, they’re far from robust. Household formation is still near a generational low, and until household formation increases, we’re unlikely to see any real improvement in the housing market for new home sales or resales.
This doesn’t mean that the average American has given up on their desire for a nice home. It just means that they can’t afford to buy it. They’ll use their beer budget to rent a champagne home if they can. Rents are up almost everywhere, and demand just keeps rising. When the Millennials decide to move out of their parents’ homes, the movement will be to rentals in far greater numbers than home purchases.
Rental property investing seems to be secure as an asset class for some time to come.

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The demand is in California...

... for sure! DOM here in Cali right now are 14 days!!! Multiple offers over asking price. The trend will probably continue while the rates are low...

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Valerie

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I agree

We Are a Nation of Renters for Now.......Thank You for the post....Smiling

Regards,
Sharon

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Life Hands You Lemons.......Make Lemonade......

It was once said, “religion is designed to comfort the afflicted and to afflict the comfortable.”


It makes

It makes perfect sense.....

I have heard the woes of student debt and the cries of I am just biting my time.......

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Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
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Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-


Sad state of affairs really

Guess as investors rentals can be good though. Just proves there is always something for the investor in any market!

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https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.


Very true

Very true Tammy

As I was glancing over be a real estate millionaire this post proves more then ever knowing one's national/ local factors can greatly help....

femailceo wrote:
Guess as investors rentals can be good though. Just proves there is always something for the investor in any market!

__________________

Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-


Good to know

Very interesting, thanks for sharing.

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Reynold Orozco


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