"Part of the reason for the squeeze on renters is simple demand — between 2007 and 2013 the United States added, on net, about 6.2 million tenants, compared with 208,000 homeowners, said Stan Humphries, the chief economist of Zillow."
Also, if someone spends around 30% of gross income on rent it's going to be difficult to save up 20% downpayment on a pad. That is a recipe for renting for majority of one's lifetime. If they spend 40%+ it's a recipe for renting for life.
http://www.nytimes.com/2014/04/15/business/more-renters-find-30-affordability-ratio-unattainable.html?_r=0
"Part of the reason for the squeeze on renters is simple demand — between 2007 and 2013 the United States added, on net, about 6.2 million tenants, compared with 208,000 homeowners, said Stan Humphries, the chief economist of Zillow."
Also, if someone spends around 30% of gross income on rent it's going to be difficult to save up 20% downpayment on a pad. That is a recipe for renting for majority of one's lifetime. If they spend 40%+ it's a recipe for renting for life.