The rest of the following article is very well thought out.
The housing market is carving out a bottom and renters are slowly starting to purchase homes again. As shown below, the percentage of apartment REIT renters moving out to purchase a home rose last quarter.
That said, the move-out to purchase ratio varies significantly across the country, peaking at 21% in cheaper markets such as Phoenix, but still low at 5% to 6% in more expensive markets such as New York and Southern California.
The motivation for renters to buy is obvious, as affordability is phenomenal and apartment REITs continue to push rent renewals as high as 10% to 15% in some markets. The real question is, "How many renters qualify for a mortgage?"
First-time home buyers (the bulk of which are under 35 years of age) now account for …
If you can't afford to buy, rent. If you can afford to buy, buy to rent.
Don't forget the landlord insurance!
If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.
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