The American Dream used to revolve around buying a home, living in it for many years, and watching its value grow all the while. While some families do still pursue that path to happiness and satisfaction, quite a few are looking into other options. Home ownership rates across the country have yet to recover fully from the blows they took during the last real estate crash. Even while property prices have, in many cases, once again reached and exceeded the records they set during the preceding boom, buyers today tend to look quite a bit different. Much more commonly than in the past, single family homes are being purchased not by those who intend to live in them, but by hedge funds and other well capitalized investors interested in renting them out.
Those who visit Twitter.com/Shecdog will see that this a notable development with plenty of real momentum behind it. There are a number of reasons why buying and living in a home has become less of an option for many Americans, and quite a few experts expect these factors to intensify in the future. For one thing, a decline in job security for a great many workers means that being tied down to a particular location or region has become a lot less attractive. Even if it might only take a few months to sell a home when a new opportunity beckons, that can turn out to be too much.
For another, many Americans today, particularly among younger workers, simply lack the income to buy homes that they would consider acceptable. Recent years have seen a surge of movement, nationwide, to urban centers that had formerly been abandoned. Buying a single family home in such a dense, well developed area might be possible, but prices will typically be far higher than in suburbia. While their parents might have fled the nearest city in order to find an affordable plot of land and detached house to live in, many of today’s younger workers find this option less appealing.
As a result, the trend toward renting, instead of buying, is expected by many to accelerate. That might well turn out to be even better news for investors who are already doing well with their portfolios full of single family homes.