While rental costs continue to escalate, there’s a decline in renters transitioning to homeownership. Many renters across the nation are spending more on living accommodations, thus limiting their financial flexibility and chances of accumulating savings for a future down payment. According to a recent report by Zillow, fewer renters believe that homeownership is possible within the next year, which could potentially affect the ongoing recovery of the U.S. housing market.
This decade is projected to witness the highest growth in rental market due to the influx of millennials entering the workforce, as reported by researchers at Harvard’s Joint Center for Housing Studies. Rent increases are beneficial for landlords, however, many workers find a major portion of their earnings going towards rent due to substantial rent increments in 2014 that were twice the rate of inflation.
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