2024 home prices, mortgage rates could be 'a wash': Expert
December 14, 2023
Owner's equivalent rental prices rose 0.5% in November, a pervasive factor in US inflation as limited housing inventory continues to squeeze homebuyers out of tightened real estate markets.
Kinloch Partners CEO Bruce McNeilage joins Yahoo Finance Live to weigh in on the outlook for renters and home purchases in 2024.
Home prices are "not going to go down, that's for sure. And mortgage rates might go down, but if the cost of a house goes up $10-20,000, it's a wash," McNeilage states.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Renting a brand new house offers several advantages, including minimal maintenance, modern amenities, and the potential for higher rental rates, while also avoiding the upfront costs and responsibilities of homeownership.
Build-to-rent (BTR) communities, offering single-family homes specifically designed for renters, are a growing trend in the United States, providing an alternative to traditional homeownership, especially for those struggling with affordability or seeking a more convenient rental experience.
A societal shift towards renting houses, driven by factors like rising home prices, economic uncertainty, and changing lifestyle preferences, is impacting the housing market, with more people, particularly younger generations, choosing to rent over buy. Here's a more detailed breakdown of the reasons behind this trend:
Particularly for those who cannot afford or prefer not to own, and by offering flexibility and affordability . They also contribute to economic stability and community development. Here's a more detailed look at the importance of rental houses:
Cities need single-family rental houses because they provide a housing option that offers more privacy, space, and a sense of community compared to apartments, catering to a diverse range of renters seeking a more detached living experience with access to a yard, while also helping to address housing affordability issues by providing alternative options to high-priced home ownership in certain areas; this is especially relevant for families, individuals with pets, or those who value quieter neighborhoods. Key points about single-family rentals: Variety of living needs: They cater to different lifestyles, including those who want a yard for gardening, families needing extra space, and people seeking a quieter environment compared to apartment complexes. Affordability: Can be a more accessible option for renters who cannot afford to buy a home, especially in high-cost housing markets. Community feel: Often located in established neighborhoods, providing a sense of belonging and community for residents. Flexibility: Allows for easier mobility compared to homeownership, as renters can move without the burden of selling a property.
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