Renting A Home In A Crippled Economy

Steve and Jodi Jacobson are like millions of other Americans who briefly lived the American dream of home ownership. In a 2012 article in USA Today, they told their story about how they put their heart and soul into their home before they lost it to foreclosure, along with their $100,000 down payment. [1] This is only one story in many that have unfolded since the housing bubble finally burst around 2007.

With home prices falling, this should mean that more people are willing to buy homes. However, it has had a reversal effect on the market. The majority of buyers are now property management companies purchasing foreclosures and short sale homes in an attempt to make a profit when the housing market rebounds. This leaves millions of homes owned, yet empty. A solution has emerged that has allowed prior homeowners or those who do not want to jump into the housing market at this time still live the dream of home “ownership” and allow property management companies to retain income while waiting for the housing market to correct.

Renting A Home In A Crippled Economy image ID 10018360 300x201ID-10018360

Image courtesy of jscreationzs / FreeDigitalPhotos.net

Renting has become the new American Dream. In 2012, the percentage increase of housing rentals by single families grew almost 70% in Arizona alone. Accompanied by 40% in Chicago, 48% in San Antonio, and 66% in La Vegas, it is clear that people are moving into the renter’s market. According to Matthew Turgeon from Rhino Media Group, a company that owns Renters Pages Magazine as well as RentersPages.com and PagesDesLocataries.com, renting is on the rise all over. “We have seen a dramatic increase in rentals. The growth of the rental market has caused a new opportunity for both investors and renters.”

Renters’ Pages Magazine is distributed in newsstands in Canada across Quebec in Montreal, Quebec City, Gatineau and across Nova Scotia in Halifax and Dartmouth. Every property that is featured in the magazine is also featured on the websites. It is also distributed by the housing departments of many major universities to help give incoming students better access to rental properties. “It is a great way to bring renters and landlords. We distribute the magazine to landlords as well as potential renters. Landlords can identify opportunities in the market where they can fill their properties with qualified tenants.” In business since 2005, Rhino Media Group is considered one of the largest rental publications in Canada. They offer online listings for all areas in the United States and Canada, including those where their magazine is not distributed.

The Wall Street Journal confirms that more people are flocking to renting as opposed to buying. In a 2011 article, they point out that home ownership was 69% at the end of 2005, 67.2% at the end of 2009, and 66.5% at the end of 2010. [2] These figures are somewhat affected by people not being able to afford home ownership, but that is not entirely accurate according to the Wall Street Journal. In 2012, the Journal reported that many people believe that the housing crisis is far from over and that renting is the best place to keep your money safe. [3] “I would rather throw my money at the rental market than allow a bank to get richer from me,” says Tom Sheer from Livonia, Michigan. “Even if my rent is not going towards my equity, that means nothing when there is no way to know how much equity your home really has.” Sheer, who was laid off in 2009 from General Motors says that he almost lost his house to foreclosure but agreed to a short sale through the bank that saved his credit. He plans on buying a home in the future, but says that right now is just not the time.

Regardless of what economic experts tell us about the markets, the economy, and mortgage rates, the statistic simply do not lie. More people are flocking to rentals than they are to home ownership. It will take more than great interest rates in order to turn the tides, and until then, continue to  watch as people fight for that right apartment as they fought for the right home only a decade ago.


[1] http://usatoday30.usatoday.com/money/economy/housing/story/2012-06-05/are-home-rentals-the-new-american-dream/55402648/1

[2] http://articles.marketwatch.com/2011-02-08/finance/30716618_1_homeownership-rates-renters-home-prices

[3] http://online.wsj.com/article/SB10001424052702304299304577348083297932466.html

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