Rentership Society: The New Normal?

Are Americans becoming a society of renters? According to this article on Housingwire.com, the answer is heading toward yes. Citing Morgan Stanley researchers, the article puts the current homeownership rate at just below 65%—down over 4% from its all-time high of 69% during the housing boom. And the researchers predict that the rate will drop even lower to about 59%, causing the rentership rate to rise and rental market investments to overshadow the ownership market investments for years to come. Among the reasons for the shift: falling home prices, which have a negative impact on the desire to own a home lack of credit; new securitization rules; and mortgage interest deduction reform. To accommodate the surge in the demand for rentals, localities are reducing barriers that hampered rental development during the housing boom, according to the National Multi Housing Council.