Moving Back In – But Wanting to Move Out

The recent recession coupled with lower median incomes and the housing crisis have combined to cause doubling up and living with adult children to be more prevalent than it was even during the Great Depression. The Hanley Wood housing survey was just completed and reports that nearly one in three, or 30%, of respondents said that they had doubled up living arrangements with relatives.

The survey also found that the respondents are still wanting to buy a home in many cases, but cite these reasons for not doing so:

- tighter mortgage standards & requirements
- larger required down payments
- concerns over the economy and job security

Despite the downturn and these reasons, the survey indicated that 87% of homeowners and 73% of renters still feel that homeownership is important for the U.S. economy. Both owners and renters strongly feel that this is an excellent time to buy, with low prices and very low interest rates. 29% of renters and 19% of owners stated that they are considering the purchase of a home in the next two years.

The survey also found that up to 2 million potential home buyers are waiting to purchase a home when they feel the time is right. Nearly one in four, or 72% of homeowners said it was a good time to purchase a home. 59% of renters felt that it’s a good time to buy. This didn’t translate into the same enthusiasm when talking about new versus existing homes. Only 12% of renters and 29% of owners would prefer to purchase a new home versus an existing one.

Renting will continue to be the norm until the time when these people believe it’s again OK to purchase. Rental property investment for cash flow will continue to be an excellent investment strategy. When the buyers come back, appreciation will come with them, and these rental property owners will create profits in re-sales.