There has been quite a few headlines recently on the rising rent prices in San Diego but what about those high rents compared to the cost of home owning? Apparently, according to the San Diego Union-Tribune, the cost of homeownership including mortgage and maintenance expenses has dropped 17.8 percent while renter’s costs have gone up 3 percent. This rise and fall in both prices took place during our Great Recession from 2007-2014. This is a great thing for homeowners whether new or those who stuck it out during the recession but not quite as good news for those who rent and can’t afford the switch to ownership.
Andrew Woo, the Apartment List data science director, said something very interesting about this in the article. Here is the quote:
“This phenomenon may exacerbate inequality in our society as those wealthy enough to invest in real estate benefit from lower interest rates, whereas minorities and younger Americans, hit by rising rents and student debt, risk being locked out of homeownership.”
Although, not all people who rent are unable to afford the switch. Some can afford the switch but are still not taking the big step. Big lifestyle changes are a contributing factor as to why home owning percentages are still lower than they used to be even with the dipping prices. Younger Americans are waiting longer than the previous generations before getting married and having kids. It is far more common, also, to move from city to city than it used to be because of the current job market.
Really interesting stuff! Read the article here: