Reply #245: There does appear to be plenty of renters ... [View All]

[spin]

More People Renting Than Buying Homes
April 11th, 2011

It shouldn’t shock anyone to know that home ownership is on the decline. With an increase in foreclosures, a tough job market and President Obama backing off from policies that encourage home ownership, it’s no wonder.emphasis added

At the height of real estate market, the rate of home ownership nationally was 69%. In 2010, the rate dropped to 66.9%. Historically, rates have stayed around 64%.

According to REIS (via CNBC) which tracks rental vacancy rates, the national rate of vacancy has been on the decline. In the first quarter of 2011, the rate was 6.2%.

“All of those things are reflecting in the home ownership rate that is still somewhat declining, and it’s generally favoring the rental market,” Victor Calanog, Reis’ vice president of research and economics, told Reuters.
http://ctrealestateunleashed.com/2011/04/11/more-people-renting-than-buying-homes/

More People Renting Instead of Buying Homes
5:05 p.m. CDT, August 9, 2011

KANSAS CITY, Mo.—
The American Dream may be fading. According to a U.S. Census report, the number of people who own their homes has declined. Realtors in the Kansas City area say credit scores and the ability to qualify for a loan is hindering people from becoming home owners.

There are hundreds of homes for sale in the Kansas City metro, but for some people the door to homeownership is closed.

"What we are seeing is the lenders, the banks making it more difficult for people to get loans," said Wayne Gray with the Gray Agency.
http://www.fox4kc.com/news/wdaf-more-people-renting-instead-of-buying-homes-20110809,0,6008621.story

British buy-to-let investors cash in on repossessed US homes

Buy-to-let investors are taking 'foreclosure bus tours' to snap up repossessed homes in the US and Spain for as little as £30,000
The Observer, Sunday 30 January 2011

British investors unable to afford buy-to-let properties in the UK are buying ultra-cheap repossessed US homes in a bid to profit from rent guarantee schemes and possible long-term capital appreciation when the American economy recovers.emphasis added

The homes are selling for as little as £20,000 in cities such as Detroit, where the combination of long-term unemployment and the credit crunch has led to house price falls of 70% since 2006, with few signs of any imminent recovery.

"We had money in premium bonds and savings in this country, getting almost no returns, and we couldn't afford to buy an investment property here. Then we heard about buying in the US," says Lynn Duggan, a clinical co-ordinator from New Malden in Surrey.
http://www.guardian.co.uk/money/2011/jan/30/buy-to-let-repossessed-homes