Wages Are Holding Back Renter to Homeowner Conversion

The homeownership rate has been on a steady decline since the mid-2000s

November 9, 2015

There is an equal share of renting households that see themselves buying a home in two years, and those that say they hadn’t saved enough or are too much in debt.

“It’s really about wage increases,” Ray Rodriguez, the regional sales manager in the New York area for TD Bank told The New York Times. “They can’t keep up with the increases in rents and home prices.”

A report from Zillow reveals that annual growth in rents has outpaced or kept up with the annual growth in home values across the nation for the most of 2015. Meanwhile, the homeownership rate remains low.

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