Americans Are Giving Up Their Mortgages To Rent Larger Homes With Lower Monthly Costs

Families who have turned their backs on the struggle to own their own homes in the overheated property market say they have few regrets, even if it means being priced out forever. The proportion of single-family homes being built as rentals has doubled in 2 years as corporations focus on those who have had enough of paying a mortgage. Analysts warn that the trend will only drive prices higher for those determined to buy, but the temptation to cut their housing costs in half and ditch the worries of ownership is proving hard to resist, with a third of all rentals now single-family homes. Mortgage rates have doubled in the last 3 years and the Federal Reserve announced earlier this week that the base rate will stay at its 23-year high. Monthly payments to buy a mid-tier home are up 80% since the start of the decade when taxes, maintenance and insurance are take into account, making it twice as expensive to buy a 2-bedroom home than to rent one. Chelsey and Spencer Marks, of Cathedral City, Calif., for example, moved 15 miles up the road to a subdivision of rental homes, wiped out their credit card debt, boosted their savings, and even had enough left over for a vacation to Europe. An inadequate supply of housing and the rising costs of home ownership has translated into renters renting longer. Some of the world’s largest firms have smelled hefty profits in the distorted housing market, with developers building houses for rental only. While the average cost of home ownership is reaching $6,000 a month, renters find that they only have to spend half that much and also get to enjoy perks like a community pool, clubhouse, landscaped parks, and even community gyms.