I did an interview with Gary Sutton with WSBA in York, PA on June 1st.
It was a follow-up piece to an article published in USA Today titled, “More Than 500 Cities See More Homes Become Rentals.” The authors wrote, “In the aftermath of the nation’s housing-market collapse and recession, more than 500 midsize and large cities have seen a rise in the share of homes that are rented rather than owned”
Most of the cities with the higher changes towards renters were same cities hit hard by the mortgage meltdown and subsequent foreclosures. I saw another news story showing that home ownership peaked at 69 percent and had dropped to 66 percent .
Clearly this should not be a big surprise. Not only did we have a housing bubble, but a home ownership bubble as well. Further, the people who lost their homes to foreclosure still need a place to live and will likely be tenants for a number of years.
The good news is that investors are buying homes in these areas and rather than flipping them as they did in years past, they are converting them into income-producing rental properties1. It’s a great time to purchase income-producing properties as prices have dropped, interest rates are low, and the demand for rental homes is up.
Contact us for more information on investing in income-producing real estate.
1. See “Flipping Versus Income Producing Real Estate Investing“
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