Will rising rents attract more homebuyers?

Zillow data shows that renters pay more than homeowners, and the Motley Fool examines why.

September 8, 2014
Rising rents may attract more homebuyers
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Based on data from Zillow’s July Real Estate Market Report, The Motley Fool says that U.S. homeowners can expect to pay just 15.3 percent of their income toward their mortgage payment on a typical home, a significantly lower amount than the average 30 percent of income that renters pay. Although there are many reasons why this is the case, The Motley Fool contends that an important one is the increasing demand for the freedom that a mobile lifestyle offers. If rents continue to rise, homebuying may be seen as a more attractive option, but The Motley Fool thinks that still won’t occur in the very near future.

 

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