Today, it is not only the homeless but those who need a place to stay for the long term who opt for renting than the rest. This trend has resulted into what some circles of thought refer to as the “forever renter class’ ‘.
Different factors come into play to account for this particular occurrence. This primary cause includes economic uncertainty, the cost of homeownership, and lifestyle preferences. Using the traditional approach for many especially the millennial many are left out because of lack of saving enough money for a down-payment and permanent mortgages.
Homeownership involves high cost where an individual or family has to pay mortgage payments, property taxes, repairs and maintenance costs as well as house insurance. This provides for the people another opportunity to rent the accommodation they seek as this eliminates the burden of having to become homeowners.
Perhaps that is why more people are increasingly renting as today’s populations and their paradigms are more mobile and less centered on homeownership. Rental is more of a portable option and there is more mobility associated with the house due to freedom to move out for new job or travel or even change of lifestyle. This ensures value for money as with changed lifestyles the emphasis is now more on experiences and more psychological well-being as compared to other monetary measures of growth and success.
Furthermore, renting has become fashionable due to this growing target demographic. The construction of multi-spec rental homes with luxury amenities and lease-to-own terms buy-in developers to encourage more tenants to become home owners. Another major trend in housing for the future is the demand for medium-density housing alternatives such as co-living spaces and shared housing that offer affordable options for people who want to be able to afford a part of the community and the convenience without having to buy a house.
Nonetheless, certain consequences might result from the growth of the forever renter population. Renting also creates uncertainty which is not present with the purchase of a home since the tenants are not guaranteed rent stability, lease renewals, or attention to property upkeep. Also, they do not get the advantages that homeownership brings with it; the capital gain (equity) that they could have enjoyed from the property.
Overall the forever renter class is a general trend paralelling changes in housing choice and economic conditions. On one hand renting may be considered to be less costly and provides one with extra freedom; on the other hand renting does not provide one with the stability or long-term investment opportunity that one could have if he or she owned a house and kept it for years. As rental market continues to develop residents ought to think through their desires and monetary goals so with they can make reasonable selection relating to purchasing or renting.