With metros like Los Angeles, Riverside, and San Diego seeing a 10.7%, 11.1%, and 15.5% increase, respectively, in the number of college grads they’ve gained since 2007, it’s hard to believe that home sales aren’t off the charts. So, What’s Keeping Renters out of the Housing Market? Especially when you factor the job growth SoCal metros have experienced this year.
But there are more barriers preventing renters from becoming homebuyers than the lack of inventory and diminishing affordability that notoriously has stunted housing growth.
So, What’s Keeping Renters out of the Housing Market?
- They believe they can actually live in a better neighborhood by renting vs buying
- They think buying a home might limit their freedom and flexibility in the future
- The process of buying a home is deemed too complicated
- They’d prefer to spend money on investments rather than a mortgage
- They don’t plan to be in a certain area for an extended amount of time
- They don’t want to be tied down to the upkeep owning a home requires
Now, some of these reasons are personal and some are market-driven. However, as more inventory becomes available, lending requirements loosen, and economic conditions continue to improve, these market-driven beliefs will become flawed.
So if you found yourself relating to some of the reasons listed above, then keep a finger on housing’s pulse and contact a loan officer to help you determine whether or not your hard-earned money is, in fact, better spent on a mortgage versus investments or rent.
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