Two more items have appeared in the expanding parade of articles that appear to be mounting evidence that the importance placed on owning a home just isn't what it used to be. The latest Housing Market Insights report from Morgan Stanley indicates high rates of mortgage delinquency, foreclosures and liquidations are turning homeowners into renters. In addition a Treasury Department White Paper spells out that it the role of the Federal Government in the housing market is changing from increasing the number of homeowners to providing housing options.
This appears to be playing out in the marketplace. A separate new report from housing search engine HotPads indicates prices on rental properties grew 6.7 percent in June.
Morgan Stanley analysts expect the trends to continue. They say GSE reform, Dodd-Frank securitization rules, mortgage interest deduction reform, continued home price declines and a long workout period for distressed homes, will likely make it harder to buy an owner-occupied home.
"As such, we believe that the U.S. will become a Rentership Society, in which the homeownership rate will keep falling, the home rentership rate will conversely rise, and the rental market will dominate the investment landscape in housing for years to come."
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