More Renters are Buying Homes

More Renters are Buying Homes

Las Vegas has become a great market for renters. An abundance of available single-family homes after the recession were snatched up a investors, both big and small.

While many of these homes will never see the open market again, they managed to offer those needing housing an array of suitable, affordable options. Additionally, these investors “saved” many neighborhoods by purchasing homes and maintaining them, helping quell any risk of entire subdivisions falling into disrepair.

Best of all, many families renting today have been able to save money for down payments. According to a survey by the National Association of Realtors®, ” …79% of owners and 58% of non-owners said they believe it’s a good time to buy, a sentiment that was consistent across age, income, city size and regional demographics.”

The American Dream

The NAR survey, called the Aspiring Home Buyers Profile, also reported, ” …91% percent of homeowners and 80% of non-owners still believe homeownership is part of the American dream.” That’s always nice to hear.

Nationally speaking, new jobs and a sturdy economy would suggest more people are financially prepared to buy. And for the most part, that’s true. Granted, there’s an inventory problem making all those American Dream dreams hard to reach.

Las Vegas is no stranger to the inventory problem. Thankfully, provided the NAR® survey is on point, 82% of those who took part, 82% still plan to buy in the future.

Millennials

These numbers may help reduce the naysayers, who believe millennials and the generation following them don’t consider home ownership a life goal.

Apparently, the survey also said that more millennials are planning to marry and settle down, which is considered one of the most driving factors for wanting to buy a home.
Naturally, this again raises the question of supply. With so many more young families wanting to enter the home buying market, builders and agents will need to work harder to build and entice them to enter the market, respectively.

The Future

Another good sign for the future housing market is that for the first time in 13 years, the number of people renting in the United States dropped considerably.

Inman.com quoted a study by Adobo, an apartment listing service, that found 500,000 fewer people were renting during the first six months of 2017. The cause for the reduction was—and is—a breaking point for renters when it comes to rates. Rent is getting more expensive than mortgages in many places, leaving tenants no choice but to jump into permanent housing.

It’s our hope that renters in Las Vegas are focused on home buying, mainly because it provides them more long-term stability. Granted, we know it’s not an easy thing to save for those down payments. Keep after it.