Skyrocketing Rent Creates Home Buyers

A recently conducted survey of prospective home buyers found that rising rent was cited by 25 percent of respondents as the reason they were looking to buy a home. The only answer more common was a major life event, such as the birth of a child or marriage. That an increasing number of potential home buyers named the cost of renting as their main motivation for buying a house should come as no surprise. Over the past few years, the single-family rental market has boomed, driving rent upward. And though home prices have also been rising, in many markets buying a home is still the more affordable choice. But buyers are thinking about more than just affordability. Prospective buyers also expressed concern that a lack of homes available for sale will make it difficult for them to find a house to buy. In fact, the number of participants who said inventory was a concern has risen 4 percent since the last quarter of 2015. And with fewer homes to choose from, potential buyers are also worried about competition from other buyers, bidding wars, and sticking to their budget. Overall, though, the survey found potential house hunters are more inclined to buy this year than they were last year, with 33 percent of respondents saying they are ready to buy now – up 5 percent from last summer.  More here.

Money1