Tuesday, November 30, 2010

The Buy Versus Rent Debate

One of the effects of the now burst housing bubble is the psyche of the potential homeowner. Is homeownership no longer a desired dream in America after someone experiences foreclosure? Are young people less likely to want to own a home when they see their parents lose their home to the bank? Is the American dream of homeownership dead?

Many investors believe that more young people will grow up to be renters rather than homeowners. There are advantages for renting: mobility; low maintenance; less responsibility. Experts say that young people today show a greater desire to rent than own because of these advantages.

But eventually young people grow up. They get married, have children, and then they want some stability. Their kids enroll in school and they become less mobile and must take on more responsibility. The trends that experts say will result in more renters, in my opinion are simply characteristics of young people.

The Housing Bubble is a major set back for many people. It has and will likely continue to reduce the rate of home ownerhsip in America. But I believe that most Americans still want to own a home. And when they are in a financial position to own a home they will do so.

The real estate website, Trulia.com recently conducted a study on the Top 10 Cities to Buy vs. Rent. They studied the top 50 cities by population and came up with this list of the top 10 cities where it is more affordable to buy versus rent.

1. Minneapolis, MN
2. Arlington, TX
3. Miami, FL
4. Fresno, CA
5. San Antonio, TX
6. Mesa, AZ
7. Jacksonville, FL
8. Phoenix, AZ
9. El Paso, TX
10. Las Vegas, NV

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