Across the nation, droves of people are giving up on the American dream of home ownership and electing to live in rented dwellings instead, said Stan Humphries, chief economist of the Zillow real estate company. Over the next year or so, between 1.2 million and 2.2 million people will be shifting from being homeowners to being renters, Humphries said.
With foreclosures still plaguing the housing market and consumers worrying about more declines coming in home prices, moving into rental housing is an appealing option. In addition, tighter lending standards at mortgage companies have been blocking a lot of consumers from being able to buy a home.
The fundamentals of the apartment market appear to be very solid for the next few years. Investing in apartments seems like a smart move for now.
Sperry Van Ness|RealSite Commercial Group