1. don’t have house purchase down payment (or can’t service IO loan debt)
2. can’t service a higher mortgage debt
3. living situation is temporary
4. don’t consider property a good investment at the time
5. future consumer confidence / psychology is weak / unknown
Overwhelmingly #3 has been the main reason to rent but in the last 2 years #4 has been the main reason (in my experience landlording 3 sfrs since 1989 – I’m sure apartments are different)
Currently rents are ~ 50% or less than it would cost to own. What is the formula whereby people conclude they should buy (assuming they can afford to) vs rent?
(btw where was that rental open house where 20 people showed up?)
