Really, renters can start the home ownership recovery! In this article, a case is made that people who would most likely be buying a home are waiting for unemployment to come down, and the government to act responsibly before buying.
It also points to the fact that investors are sitting on a lot of cash, and purchasing financially distressed properties at a highly discounted price can lead to a stable cash flow for a protracted period of time.
The catch is that current FHA, Fannie Mae and Freddie Mac require huge downpayments and a substantial waiting period for purchases.
I have written several articles in this blog that point to the increase in renters in the downtown Charlotte market during 2011. The thrust of my blog is to focus on the trend to embrace the urban lifestyle, and renters can embrace that as much as owners can, and embrace it they are.
Getting back to the article linked above, the implication is that if investors are allowed to help clear out the foreclosure and shadow inventory issues in the private market, the government (you and me) will not be stuck with carrying that burden.
I have been more active over the past 90 days than I have since 2007! A large portion of that activity is coming from people seeking to rent. As we search for properties, I am finding that rental rates are increasing, time on market is decreasing, and landlords are not negotiating on their rates.
Supply and Demand reigns again.