Housing's instability leans some toward renting

Government efforts are encouraging multifamily development, while many Americans continue to struggle with credit issues. It all adds to an increased demand from consumers moving into apartments, said a report.

AOL Real Estate reports that renting has become a preferred option for many Americans given the unstable state of the housing market and the government's growing emphasis on helping low-income consumers rent rather than buy a home. Foreclosures have pushed many people out of their homes and moving into a new one won't be possible for quite a while considering it generally takes years to rebuild credit. Renting is the only option for those consumers, though it does come with the added perks of living a relatively maintenance-free lifestyle, said the report.

All the while, rising demand means increased rental prices. The report suggest that if consumers are considering moving to an apartment or rental home in the near future, they do so soon.

"America is clearly becoming a renter nation with potentially 10 million new applicants entering the market," said the report. "So lock in your rental rates now before they begin to increase to meet the growing (and growing) demand."

Certain trends have also pointed to the increased popularity of renting. Recent Census data showed that the nation's homeownership rate was down to 66.9 percent in the third quarter, while rental vacancies fell to 10.3 percent.
 

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