Florida International University’s College of Business just released a report that said 16 of 23 major cities in the country are now a better place to rent than to buy. Why? They believe that renting and reinvesting the money not spent on ownership will outperform owning and building equity in terms of wealth creation.
Their index is predicting that these 16 cities will experience downward pressure on the demand for homeownership and we will begin to see downward pricing pressure, meaning that annual price increases will begin to slow.
I bet with 100% accuracy that these “experts” have not considered my 2 previous stories about labor and land shortages, which are national issues. Plus, they haven’t considered that real estate investors will keep buying homes.
It all boils down to population growth in a city or metro area and all those people need a place to live. And real estate investors know this and will take advantage of this opportunity. As long as we keep creating a ton of jobs and our population keeps growing by 40,000+ people a year I will continue buying more rentals when I can. I have been saying for many years that I believe our owner occupancy rate in metro Denver will be down to 50% by 2030.