With the average California home price at its highest point this year, more people are opting to rent instead of own, leading to a mushrooming effect in the leasing market. In Southern California, detached single family rentals increased 29 percent over the last decade. Compare that to just a 13 percent increase in apartment units.
The state as a whole saw a 27 percent gain to 1.8 million homes for lease. That means approximately 1 in 4 houses in California is a rental. So why is the leasing market for single family homes increasing so rapidly? The answer is simple. People don't generally prefer to rent. Most Americans would rather put that monthly payment towards an equity investment, but many can't afford to. More than 90 percent of tenants have financial obstacles to buying. Therefore, families in need of more space, better school districts, etc. are turning to their only option...renting.
Landlords, on the other hand, range from large hedge funds, to private investors, to retirees hanging onto their properties because of the high demand and gain in appreciation. A growing number of homeowners are choosing to rent out their properties rather than sell to avoid capital gains. Now with rent rates escalating, many homeowners can cover their mortgage and then some, so why not make a profit?
Today, the American Dream of owning a home is so far out of reach for many Americans, especially in places like Southern California where prices are some of the highest in the nation. The dream of having a home hasn't gone away, the way of obtaining it has simply shifted. Rather than investing in real estate for the pride of homeownership and the investment in equity, more people are turning to renting just so they can have a single family residence to call home.
Another reason for the growing number of renters is the idea of testing out new neighborhoods. Many buyers are relocating and they don't want to make such a huge investment in a place they're not sure they are even going to like or stay in. Renting allows them to feel out the neighborhood and get a sense for where they may want to buy or move to. They may not have the capital now, but in a few years they will be ready and crossing their fingers home prices will come down to help them get into a place they can afford.
Author:Liz Peters Phone: 949-683-5374 Dated: July 9th 2018 Views: 513 About Liz: An Orange County native and Team Manager of The Kurt Real Estate Group with a heavy background in bo...
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An Orange County native and Team Manager of The Kurt Real Estate Group with a heavy background in both
Marketing and Transaction Coordinating, Liz has handled it all - from listings to buyers, from the beginning stages to
the close of escrow and beyond. Coming from a digital marketing start-up in Los Angeles, Liz moved back to Orange
County to apply her keen sense of marketing knowledge to the real estate industry and it shows. Her experience in PR
and publishing provides a competitive edge to her clients and The Kurt Real Estate Group collectively.
Liz got into real estate because she saw an opportunity where she could be an asset in an industry lacking in marketing
innovation and provide a far superior service to both sellers and buyers. One thing Liz prides herself in, above all, is
customer service and the relationships she builds with each and every client. Just read the reviews. Liz strives to always
obtain the best for her clients and becoming a part of The Kurt Real Estate Group could not compliment this better.
With seven consecutive years of being featured in Orange Coast Magazine for customer service, this was the place
for her. Liz is passionate about helping people and her ability to connect with clients is unparalleled. In her spare time,
Liz enjoys hiking, skiing, and traveling. Having lived abroad in Portugal and London, Liz thoroughly enjoys culturally
"Liz is great!! Knowledgeable, reliable, ethical, organized and punctual - she is the best!
We just closed on a home that we love in Nellie Gail and we couldn’t be happier! We wouldn’t have been able to do it without Liz and the Kurt Real Estate Group making themselves available to us, helping show us so many properties, returning calls, returning texts and teaching us so many things we wouldn’t have even known in terms of location and red flags in different homes! With all of the unreliable and dishonest agents out there, I can say with confidence that it’d be a mistake not to choose Liz and the Kurt Real Estate Group for any of your real estate needs. They make the whole process so easy and they take pride in everything that they do. They will be our first call when the need arises again!
Thank you, Liz and the Kurt Real Estate Group! You are second to none!