Although there are many houses for sale, not all are bought. As such, some homeowners prefer to rent out their homes for profit, while their property does not yet have a buyer.
On the other hand, not all people can afford to buy a house. Or it could be that they are only temporarily in the area. Your best option is to simply rent an apartment or house that you can afford.
Unfortunately, rental prices for apartments and office space are planned to continue to rise. This increase in rents is due to rising demand and insufficient supply. The latest buzz is that both the residential and commercial property markets will see rent increases in the coming months and even years. According to reports, the US is currently experiencing an all-time low in terms of homes and a rise in rental prices. The rise in rents will continue over the next two years, while high prices for commercial space will continue to rise in three to five years.
In December 2019 alone, rental prices for a main residence increased by 2.5 percent compared to the same period last year. The increase in rents in 2020 was the highest, reaching an average of 1,009 U.S. dollars, according to Vonderinder Reis Inc.
Recent government statistics also confirm that more homes are now rented out than owned. According to the Ministry of Commerce, the number of dwellings occupied by tenants increased by 749,000 in the last quarter of 2020. The number of housing units occupied by the owners was only 91,000 or 66 percent. This is considered to be the lowest proportion of homes since the second quarter of 1998.
The Government Accountability Office also revealed in its November 2019 report that the number of vacant homes increased by 51 percent nationwide over a 10-year period from 2000 to 2010. It rose from 7 million in 2000 to 10 million.
This situation can benefit people who want to buy a house to live with their families. A study by real estate research firm Trulia.com buying a home can be cheaper in 74 percent of major cities in the U.S. today than just renting a home. Property experts also pointed out that this trend is likely to continue until potential home buyers become more confident in the housing market.
As demand for rental housing remains stable, the supply of housing has declined, leading to higher rents. Moreover, more and more homeowners are insolvent with their mortgage payments, while others are already facing foreclosure problems. This simply means that it is difficult for these people to own a house, especially those who do not have permanent jobs or are still looking for new jobs.
So for those who have their own homes, make sure to pay your monthly fees immediately. Those who still rent should also start saving so that they can eventually buy their dream home.