Rental units gaining popularity

The trend of people moving into multi-family units and apartment buildings after being forced out of their homes due to foreclosure seems to be piquing the interest of some investors, according to the News Press.

The source reports that, as foreclosures go up and expectations for the housing market remain less than stellar, many investors and home builders are modifying their plans to place most of their efforts in the area of rental properties.

In addition to foreclosure victims forced into the rental real estate market, some others are choosing to rent simply because owning a home has lost much of its appeal, the source suggests.

"I think a lot of people now are choosing to rent by choice," real estate consultant Jack McCabe told the source. "Prices are back to about 2001 levels and in some cases 1999. Over the last year [a typical house] hasn't gained in value. A lot of people are going to opt out."

Experts suggest the number of individuals moving into rental properties will likely continue to increase until the employment sector improves and individual work situations are stable enough to allow for a long-term investment such as a new home.  

More News