There is a concern that our home rental number in Candlewick is approaching 10%. A percentage cap on the number of rentals is being considered and might not be a bad thing, promoting stable home ownership rather than more transient residents. Too many rentals could also depress home values that have already declined here as well as in almost every other area. We need to stabilize values to the benefit of all property owners. This morning in USA TODAY I read an interesting article on the subject. See below.
Some areas of our country are in a situation of rental homes starting to outnumber owned homes. The switch to rentals is in part due to the foreclosure problem that is continuing as well as home ownership no longer being a sure way to build a nest egg for retirement. Actually now home ownership can diminish your nest egg rather than build it. This could be a long term situation for rental growth.
Irvine California now has a 2010 home rental number of 49.8%, Birmingham Alabama is now over 50%. Nationwide……..and this was a shocker to me……..rented homes compared to owner occupied homes are now at 34.9%. I didn’t think I would ever see the day. The article indicated most still aspire to own homes but it isn’t happening. I guess this is simply more of the sad “new normal” as Bill Gross calls it.