San Diego Homeownership vs. Renting
Why homeownership is falling and may continue to do so
Housing is a superior inflation hedge but increasingly it is one that makes long term sense only for upper and upper middle class families and those middle-middle class families who have no or minimal real estate debt.
Moreover, for most households, ownership still has a powerful emotional appeal and many famines are still deluded by the mortgage tax deduction into thinking that reduced income taxes more than offset the very large claim on gross income made by property taxes, insurance and maintenance.
In 90% of zip codes the total costs and risks of home ownership exceed the total costs and risks from renting. Quite likely renting will become a new fact of life for many young and lower middle class people and the home ownership rate will continue to fall.
Brokerforyou – Bob Schwartz – California real estate license #00706331