Homeownership decline may be a positive progression

Experts believe that many people purchased homes during the credit bubble that simply could not afford to, according to U.S. News and World Report. The number of Americans who owned their homes fell to 66.4 percent in the first quarter, according to the U.S. Census Bureau.

"Falling back to the 66-percent level is probably a good thing," Ken Shuman, head of communications at real estate information website Trulia, told the news source. "Homeownership isn't the American dream for everyone. A lot of people bought homes who shouldn't have been able to buy homes."

As people are unable to remain in their homes due to inflated mortgage payments and a steady unemployment rate, relocating to a leased property may be beneficial for everyone involved. The housing market is saturated with foreclosures and short sales, according to Freddie Mac. When people are able to get out of a situation they cannot afford, moving into a rental property may be exactly what they need.

The rental vacancy rate was 9.7 percent in the first quarter, down from 10.6 percent last year, according to the U.S. Census Bureau. Experts believe that as this market gets smaller, prices will increase, giving home sales a boost, according to the news source. If rent becomes more expensive than a mortgage payment, people may go back to buying.  

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