In an earlier post, we discussed Allison Arieff’s 2011 article about why the homebuilding industry must “stop thinking about the home as a decorative object and begin considering it as part of a larger whole.” A new Demand Institute study cited more reasons for the industry to change, primarily a shift in consumer preference from owning homes to renting them, especially among young people and immigrants.
But this shift isn’t limited to these demographic groups. As it turns out, baby boomers and younger workers, feeling their purchasing power slip, are looking to downsize. And as they do, their spending patterns will change. “For example, people who rent their home tend to own fewer cars, so demand for neighborhood rental cars should rise.” The shift to rentership may create opportunities for other industries to design new products and services addressing renters’ particular needs and concerns.
The shift could affect classrooms as well as neighborhoods. “The rentals can mean shifting student populations that present more challenges for schools, says Roger Freeman, superintendent of the Littleton Elementary School District in Avondale , Arizona
What does the shift mean for public policy?
The Shifting Nature of U.S. Housing Demand, Demand Institute, May 2012 (http://www.demandinstitute.org/sites/default/files/blog-uploads/tdihousingdemand.pdf)
Money, “Home Rentals—the new American Dream?” June 6, 2012 (http://www.usatoday.com/money/economy/housing/story/2012-06-05/are-home-rentals-the-new-american-dream/55402648/1)
