The housing crisis that politicians are ignoring is that the cost of rental housing has become crushing in most of the country. More than 85% of U.S. markets have rents that exceed 30% of the income of renting households. Furthermore, rents are accelerating at a more rapid pace than home prices, which are moderating. Realtors have been seeing rents on vacant units increase at a double-digit pace in the second half of 2016.
Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today.
This trend does not bode well for the health of the housing market in the future. It will only improve if we see more construction of affordable rental housing, as well as more of a pathway for renters to become homeowners.
If you’d like to explore your options for becoming a homeowner, visit the Coldwell Banker Heritage Realtors website or call (937) 429-4500.