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Today, most Americans do not lease their homes but own them. American economic experts and professionals in the housing market do not expect this fact to change any time soon. However, the ratio of homeowners to home renters is beginning to shift slightly toward renters, though they are still largely a minority. Many people might assume that what is at work here is a loss of income, allowing fewer Americans to purchase homes. Actually, something entirely different is happening. In fact, people are beginning to enlist the services of Realtors like Joan Pletcher to locate luxury properties for rent. It may be surprising, but there is a booming demand for properties listed as "for lease" rather than "for sale," even when it comes to higher-end homes. Now, many wealthy homeowners of different age groups and demographics are leasing luxury properties. A Likely Cause Many experts have wondered if this change has to do with the recent housing market collapse and that in recovering from that bust, homeowners are correcting past mistakes, covering their assets by choosing not to invest in property ownership. This is not certain. After all, it is still recorded that the majority of Americans across the board have a majority of their assets tied to their homes. When the housing bubble was at its most expansive, almost 70% of Americans owned a home. At the beginning of 2015, according to data collected by The Washington Post, that amount had fallen to just over 63%. This, housing market experts believe, means that the 2010s will show enormous growth in housing rentals in over 20 years. The Renters The types of people renting are diverse nowadays. While baby boomers still represent the highest percentage of homeowners in the country today, the home ownership rate of individuals in their 30s and 40s is lower than it has been in several decades. Those that are moving to lease properties are not just single 20-somethings, though this demographic represents the highest percentage of property leasers. Retirees, families in their 30s, and even families with a parent over age 55 are renting more than they have in decades. The latter group is responsible for 42% of the growth in property leasing. That means that singles, families, and people of different ages are all considering renting more than ever. Clearly, it is not just millennials driving the rental boom. People of different incomes are renting more than ever, too. Those in the highest 20% of incomes in the country show the highest amount of growth in the property rental market. Not only that, but there is more happening than a boom in apartment and condo rental properties. In fact, the demand for properties to lease is so high that the rental housing supply is experiencing a huge rate increase. According to a study conducted by Harvard University, rental prices in America last year rose twice as fast as inflation. The Rise of Luxury Rentals What this means is that luxury properties are beginning to become highly competitive as they are demanded more than ever. Clearly, the supply of rental properties has not kept up with the demands of renters of different demographics. While apartment and condo renters are witnessing a large amount of properties being built to their demands, wealthier Americans are demanding large, beautiful homes on expansive land to rent. The growth of detached, single-family homes available to lease, though, have represented the slowest growth rate. That being said, there are still Realtors like Joan Pletcher that are offering luxury properties to lease. Those in search of high-end homes to rent still have impressive options, though the market is moving quickly. If you are searching for a new home, it is best to look quickly before the small supply of properties is taken.
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