When I was a kid, there was such a thing as the “American Dream.” This dream involved growing up, finding a good job and one day owning a home to raise a family in. In recent years, that dream has changed and now owning a home is becoming less important and less accessible than it used to be.
There are many reasons people are opting to rent as opposed to buying a new home.
One reason is that as a nation we tend to move around more than we used to. It is not uncommon for people to change jobs every few years and as a result people don't want to get tied down with a home that they may or may not be able to sell.
There is also the overall health of the housing market to consider. The recession hit the housing market hard, and a lot of would-be homebuyers are still reluctant to jump into the market. There have been too many stories of foreclosures and underwater mortgages. Everyone knows at least one person who owes the bank more than their home is worth, and as a result they are hesitant to buy a new home.
While banks have been loosening their lending standards a bit as of late, they are still tighter than they have been in the past, which also cuts back n the ability of some people to buy a new home.
As a result renting is the new norm. Consequently, rents have been rising. Rental properties are becoming a new asset class, with several big companies trying to capitalize on the new trend.