Click here to view an interactive map of the United States that shows the rental areas of the country that are most cost-burdened by level of income. It seems like rental costs are high for even middle income renters in most parts of the country. These are the individuals who would make good candidates for home ownership. This signals that a whole new wave of potential home buyers is likely to come into the market in the coming few years as rental costs continue to increase.
If you’re an investor renting to a middle income household, it may be worthwhile to talk to your tenant about a rent-to-own plan. This reduces your risk that the tenant will leave you in the coming years, and it gives you a defined exit strategy for your investment.
Contact me for further information.