Homebuyers are getting increasingly frustrated as the shortage of homes for sale is causing leading to home rental growth. However, the current financial scenario is making real estate companies and homebuilders bet on potential homebuyers with lower incomes to settle for renting their dream houses. According to a CNBC report in September 2021, the shortage of homes
Homebuyers are getting increasingly frustrated as the shortage of homes for sale is causing leading to home rental growth. However, the current financial scenario is making real estate companies and homebuilders bet on potential homebuyers with lower incomes to settle for renting their dream houses.
According to a CNBC report in September 2021, the shortage of homes for sale in the U.S has reached over 5 million. This means 5 million families are looking for homes to buy and are currently renting. This is a massive figure acting as a catalyst for home rental growth.
If you are a potential homebuyer, who wants to know more about the trend of home shortage and growth in rents, this post is for you. If you have any specific questions, feel to ask us on I Need House Info.
Reasons for Home Rental Growth due to Shortage of Homes for Sale
Three of the main reasons why the shortage of homes for sales is fueling the rise in rents across the country are:
Lack of Affordability
The shortage of homes for sale gave the home sellers and builders an advantage to ask for higher home prices. This has left a lot of potential homebuyers struggling to find affordable properties.
This forced home buyers to opt for renting a house instead of buying one, resulting in high demand for rental properties. Once again, the real estate investors and owners used this market shortage to their advantage and increased the rent.
Build-for-Rent is Trending
Homebuyers are turning towards renting a house till they can find an affordable property. This has kick-started a trend of builders and investors building single-family and multi-family units for rental purposes only. This has created a further shortage of homes in the market, encouraging home rental growth.
That said, some of the benefits for homebuyers to opt for residing in built-to-rent (BTR) properties are access to quality homes, flexible benefits, and lesser requirements for repair and maintenance. Most BTR properties have proper building management companies who take care of the entire repair, maintenance, etc.
Renting out a Dream Home
While the homebuyers may be unable to buy their dream home, they can certainly rent one out. This trend is rising because the higher real estate selling prices are making it impossible for buyers to gather enough money to buy one. However, new home buyers will settle for renting their slice of the American Dream.
Are you a potential homebuyer looking for information about real estate, questions, and tips on buying a home or saving money on a mortgage? We at I Need House Info can help.
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