As home prices rise across the country, hitting new peaks in some metropolitan areas, many Americans are locked out of homeownership. For others, however, homeownership is within reach, they simply don’t care.
One renter, Timothy Brown, in New York City lived in seven rented studios over the past 16 years, despite having the money to own a home, according to an article by Joanne Kaufman for The New York Times.
From the article:
His real estate agent has been urging him in the strongest possible terms to buy a place, and Mr. Brown, 41, an interior designer, has the means to do so. The inclination? Not so much.
“My nature is to move every couple of years,” he said. “My broker has tried to convince me about the tax write-offs of ownership, but I have enough of those with my business.” Although Mr. Brown is renting (he pays $3,100 a month), he was permitted to renovate the kitchen and bathroom and thus put his stamp on the place — just as if he owned it, something he has done in almost every apartment he has rented.
The article explains renting is a smart move for many who want the freedom to move around. Due to high home prices, taxes and fees, buying a home doesn’t make financial sense if the buyer doesn’t intend on living there for at least four or five years.
Many Americans are choosing to renter lifestyle. This year in Plano, Texas, a Dallas suburb, Avilla homes held its grand opening for its first leased neighborhood.
When asked about the competition its causing on the market for those who want to buy a home, Josh Hartmann, NEXmetro Communities chief operating officer, explained leased homes are not competing with single-family homes, but catering to an altogether different demographic. He explained too many people get caught up in what they want, but emphasized that not everyone wants the same thing.