High Rental Rates Should Lead to More Sales

From Beth Sprunt

(314) 494-5122 – beth.sprunt@upperendproperties.com

Usually the number of homeowners increases each year due to population growth, but due to the “Great Recession,” this hasn’t been the case over the past five years.

As Lawrence Yun explains in March’s Realtor, even though the US population grew by 13 million, the homeownership percentage dropped by 3%.

According to economists, this is great way to bring the homeownership level back down to where it should be.

Overall, the economy seems to be taking a turn in the right direction with manufacturing output increasing, jobs being created and consumer confidence on the rise, the amount of people owning homes will be on the rise as well.

Another factor that will push renters toward buying is the high rental rates. When renters realize they can pay less to own a home, they will start looking in that direction.

With all of these factors taken together, home sales are expected to rise by 8% this year. A great outlook!