Aug 22

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An analysis by Market Watch revealed the cost of rent was 3.8% higher than a year ago for the second straight month in June. That’s the strongest yearly price gain since 2007.

Source: Keeping Current Matters

Look For Shift Back to Homeownership, notes Tom Skahen, New Homes CEO of Streamline Communities. As rental rates continue to push up in the Northeast and mortgage rates trend down, start looking for the shift from rental to homeownership. Since the great recession of 2007, homeownership rates have dropped nearly 10 percent in the United States. CNN Money reports that 110 million people in the U. S. now rent and 21 percent are paying more than 30 percent of their total wages on rent, while homeowners percentage of housing expenditure continues to trend down. This is not sustainable, and we’ve hit a crossroads. There is going to be a shift back to homeownership and that includes the somewhat non-existent Millennial buyer. So builders, get ready for this demographic