Posted January 25, 2012 by RentJungle
The housing market has continued its decline over the last year, and as a result many Americans are less likely to join what they consider a more 'risky' move: buying a home. Instead, 20-24 year old Americans are continuing the trend of renting in lieu of owning:
"Hessam Nadji, managing director, research and advisory services at the firm, tells GlobeSt.com that “Demand for rental housing will remain robust in 2012 as strong demographic trends combine with shifting consumer behavior. The total population within the prime 20-34 year old renter cohort has increased dramatically, and will increase by an additional 2 million through 2015,” he says. “As this age cohort continues to face significant hurdles to homeownership and as the tight employment market encourages flexible housing decisions, many of these new households will continue to favor renting.
In addition, Nadji says, though foreclosure activity has begun to recede from peak levels, homeownership rates have declined dramatically since reaching their 69.2% peak in 2004. “The most recent readings place homeownership at 66.3%, and this sharp decline has significantly added to rental housing demand. As a result, rental housing will remain a favored choice for the coming year.”