More homeowners choosing to rent out than sell

1 Reply

There's a new trend among homeowners looking to buy a home in 2014. They're choosing to rent out their current home instead of selling it to buy their next house.

39% of buyers prefer to rent out their last home than sell

Experts are attributing this to the refinancing boom.

"Homeowners who refinanced when fixed mortgage rates dropped below 4 percent will be less inclined to put their homes on the market as interest rates climb. And as a result, the limited property supply already impeding sales in many markets may not ease anytime soon."

Fallout from Financing

The next 5 years are going to be super interesting! While I totally agree with the idea of the statistic. I do think the area is very area dependent. I have found in our areas even though homeowner have REALLY low interest rate. Since they are military they are very hesitant to rent when they can sell. I also think those "horror" rental stores will keep others away even if they are buying in the same time. I spoke with another person today that is planning on using the equity for another purchase.

I have a feeling in 10-15 years, you will find the same thing that you find in areas of rent control. Where there are some people with really low rents but many have moved on as life has changed.

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