Homeownership is down in recent years in the United States (with a recent uptick) and this has affected even among relatively high-income earners:
Families such as the Bauerles who want to live in solid middle-class neighborhoods with good schools and reasonable commutes are increasingly renting single-family homes. Taking advantage of this trend, the private-equity firm Blackstone Group Inc., with other investors, launched a business that is now the nation’s largest renter of single-family houses.
The number of households that have inflation-adjusted annual incomes of $100,000 or greater but are renters nearly doubled from 2006 to 2016, according to the Joint Center for Housing Studies of Harvard University.
Domonic Purviance, a senior financial specialist at the Federal Reserve Bank of Atlanta, said people earning the median income can no longer afford the median-priced new home, costing $323,000 last year, and barely have the means to buy the median existing home, which now about $278,000.
The overall focus of the article in on the major sources of debt facing middle-class families today: housing, student loans, and cars. Out of this trio, the suggestion is that mortgage debt may come last out of these three. Many believe they need a college education (at least) for decent jobs and to maximize their earnings. A car loan is often a top priority as driving is necessary in many locations. Even if the majority of Americans desire to own a home, they can put that off until later.
Hence, renting is on the rise. This raises two big questions in my mind:
1. It could be interesting to see in the next few decades how upper middle class residents react to not having as easy access to homeownership. Will it turn them off to owning? Will they feel resentment and, if so, who do they think is to blame? Will this change spread to other groups since the upper middle class is one hat others would aspire to?
2. For the middle class and above, renting is often viewed negatively, particularly in wealthier communities. The perception is that renters are less invested in their community and property. If more people of means rent single-family homes instead of own them, could perceptions change?