The ranks of renters have grown in recent years, and may continue to do so as many families that would have been expected to purchase a home in the past choose not to. At the same time, improvements in national employment are now encouraging household formation among young adults, which was previously stalled.
Many who lived with their parents or as roommates during the financial crisis are striking out on their own, according to the New York Times News Service. Job growth in the past two years has been especially beneficial for 20- to 34-year-olds, a demographic traditionally likely to rent rather than buy housing. Some experts are considering the possibility that the nation’s financial and housing situation has permanently changed their outlook compared to that of previous generations.
“I think it?s going to be interesting to see whether there?s been a fundamental sociological shift in that 20-35 year old cohort, where they literally say ‘this American dream just doesn?t work for me,'” said one apartment industry executive.
If so, they may choose to rent single-family homes rather than purchase them as they grow older. Property management companies can help owners operate such properties however the national housing market develops in coming years.