Renters in New Jersey, New York and just about everywhere else in the US are struggling to make the leap to become homebuyers.
The economic recession is over and home prices are on the rise. While this is very good news for the two-thirds of adults in the United States who currently own homes, it’s very bad news for recent college grads who are about to enter the job market, individuals who have struggled with debt-related problems in recent years, and anyone else who does not already own real estate.
Widening Economic Divide between Homeowners and Renters
Although the economy has largely bounced back since the housing bubble burst 10 years ago, many people are still having serious problems when it comes to affording real estate. As a result, the total number of people renting apartments, houses and other properties is on the rise, while the total number of people purchasing homes is on the decline.
Low rates on mortgages mean that homeowners don’t need to make large monthly payments, freeing up their finances and allowing them to cover other necessary expenses.
Meanwhile, renters have to deal with surges in the cost of apartment rentals, which can further deplete their already-drained financial resources.
Additionally, renters who hope to save up enough money to be able to afford a home purchase are finding that this is easier said than done: pay in many job fields remains stagnant and home values continue to go up, making it extremely difficult for a person who rents a house to become a person who is able to buy a house.
For these individuals and families who live paycheck to paycheck, said Svenja Gudell, chief economic at online real estate database company Zillow, it is almost impossible to get into a position to buy property. “You’re really blocking out a group of buyers from owning a home,” noted Gudell.
The long-term significance of this divide between homeowners and renters goes beyond the immediate consequence of a recent college grad, or anyone else, not being able to buy a house. There is also the very real problem of economic inequality being exacerbated as individuals who already own homes are able to build their wealth through home equity, while renters remain on the outside looking in.
For more information, read the Yahoo.com article, “10 Years after Housing Peaked, US Is More of a Renter Nation.”
If you are thinking about buying a home in New Jersey, you need to speak with a qualified real estate and debt management attorney. Joel R. Spivack, Esq., is an experienced real estate and debt relief lawyer who can guide you through the home buying process. Contact Mr. Spivack today to schedule a free consultation.
