Home ownership numbers are down nationwide. There are a number of negative outcomes that can be directly tied to this fact, including serious concerns about retirement for those who might have expected to be able to tap the value of their home in their old age. But does low home ownership mean fewer affordable renters in Dallas?
Most homes which have been foreclosed on or are in the process of foreclosure end up sitting empty for a very long time. This obviously reduces available housing stock, because they’re neither owner-occupied nor able to be rented. These homes fall into disrepair and are a blight on the neighborhood. Whether the owner walked away voluntarily or not, the banks that own these homes often seem to have little interest in transferring or maintaining these homes.
While we’re not suggesting an unfunded mandate on the banks to require them to rent or sell these homes, and such a thing would probably not be practical, something needs to be done. When homeowners can’t afford their homes, those homes are then removed from the pool of available housing for a period of time – usually much longer than necessary. Fewer available homes means more competition for rentals, which means fewer affordable rentals in Dallas.
Saving A Down Payment And Renting A Decent Apartment In Dallas Are Often Mutually Exclusive
Many renters in Dallas are stretched very, very thing. As housing costs rise, and people are stretched even thinner, it becomes more difficult to save a down payment for a home. This means that people who would eventually move from renting to buying in usual circumstances are unable to do so for longer than expected, or at all. When people can’t buy homes, the apartments they live in remain occupied, reducing availability and driving up costs.
The current situation where home ownership is more difficult than ever is unsustainable. Not only does it have the potential to impact the market of homes for sale, but it has a direct and obvious impact on the rental market. Fewer affordable rentals in Dallas means that budgets are stretched even thinner, causing the cycle to repeat.
Most Renters In Dallas Have Nothing To Fall Back On
The vast majority of Americans are unable to come up with $5,000 or even $1,000 for an emergency. They have absolutely nothing to fall back on. With no emergency fund, one small problem could make rent unaffordable for a family. This is not a sustainable situation, and it creates serious economic problems. The lack of an emergency fund is a strong indicator that housing is less affordable than ever.
When fewer people own homes, there is less turnover in rentals because renters are stuck continuing to rent. When fewer people own homes, there is less wealth changing hands, which is bad for the economy. At an extreme level, this can prevent new rental housing from being built. One possible solution would be for more rental housing firms to purchase foreclosed single family residences and rent them out. This would result in more affordable rental housing in Dallas, and it would be good for the neighborhoods. There are companies which successfully employ this model, but much of that housing is sitting vacant.
Even if your housing is not affordable, you still need renters insurance. Fortunately, it starts at about fifteen dollars a month. When you have renters insurance, you know that a crisis won’t put you in a position where you have to choose between paying rent and replacing property that suffered a loss. Renters insurance is cheap, and you have time to get it. It takes just sixty seconds. All you have to do is call (800)892-4308 or click to get covered - whether you need Dallas renters insurance quotes online or coverage anywhere else!
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