According to REALTOR magazine the majority of renters are staying renters in spite of rents rising, some to record levels. Freddie Mac (Federal Home Loan Corporation) who recently surveyed 2,000 adults about the views on renting found that raising rents does not deter renters from continuing to rent vs. buying a home. This survey contradicts what some experts expect renters to be doing: buying a home. The folks at Freddie state that they think that rising rents reflect demand vs. home purchasing will be increasing (well duh). According to the US Census Bureau 33% of all households rent. In Austin the percentage is a whopping 51%. The survey stated that 70% would like to buy a home but that they can’t afford to do so at this point in their lives. Maybe that is because they spend so much money on fashionable clothes, dining out, and fast cars. At this point I must quote one of my favorite philosophers W.C. Fields who said that he spends half his money on drink, women, and gambling, and the rest of it he squanders! Back to the serious side, many renters may find themselves moving further away from purchasing a home.
And this is where you and I, investors in Austin area residential real estate come into play. We can offer nice properties to rent to high wage earners who would normally be homeowners a great place to live.
Let the good times roll!