Statistics tell us that home ownership is saturated. That means, statistically, no buyers on the sidelines. We are at 69% homeownership,the highest in our history. As far back as this is tracked, we were at 62 or 65%, I can’t remember which. Loose lending has raised this to 69%. Who can still buy that hasn’t? Sure, you have a few bubblesitters, but we folk on piggington are not going to move the market. Even if 1,000 people in the US cashed out to rent, I would be surprised. I personally know of no other people who cashed out to rent, except this group here.
I think you’ll be hard pressed to come up with data supporting any notion of money on the sidelines. The fact is, everyone who wanted a house already bought one. Or two. Or three.
Once prices fall enough, investors and first time buyers will enter the market. But many people will lose their homes first. We will NOT have an increase in the percentage of homeowners. New buyers will be replacing retirees and NOD victims. It’s as simple as that.
A reversion to the mean requires that we return to the historic 65% (or 62%, ?) homeownership rate.
