Our elders have always passed on this one word of advice that no matter what happens your ownership of your house must remain intact. This year, however, the United States of America starts off with a considerably low homeownership rate which is not, contrary to popular belief, a bad news for the economy.

More and more families are now inclined towards getting a place to live on rent instead of spending a hefty sum or diving in loans. Experts say that this low rate comes about as a result of the decision of the US people to get wedded at a later age or not get wedded at all. The overall benefits that these shifts in trends are bringing are explained as follows.

1. Fewer Credit Problems

Mortgage loans do enable people to make a heavy purchase at a moment in time, but their interest backed repayment which consumes almost all of the remaining life of that individual is perhaps not a cost that is worth giving. This falling trend shows that the number of people willing to put their financial ability and future stability on the line has decreased, and they would rather go for a rented place which is in reach than follow the old home ownership folklore.

With financial institutions not finding such people to prey on and cases of late/no repayment reaching the authorities less and less, the overall multifamily market is bound to head towards more stability.

2. Capital Equality

Capitalist markets do not care much for the equality in wealth distribution so long as the running of the country in the bigger picture remains firm, and that is exactly what this trend is indicating.

Perhaps this decision of dropping out on ownership is a result of the inability of people to afford homes entirely in expensive neighborhoods simply because the inflationary pressure in the economy is too much, but with more people falling in this middle-income bracket the overall impact remains positive. This inability might soon result in the housing market being forced to lower its prices so that potential buyers re-enter the market.

3. Combating Stress

It has been found that people in the big states could be spending around 60% of their payment in paying the mortgage interest rate which rises every year due to various policies of financial institutions. This leads to the accumulation of stress in individuals because getting such a small amount out of your hard earned pay leads to a stressful environment around.

Compared to mortgage premiums, rent amounts are not nearly as heavy which is why they can remove the stress that finds its way in people, who in turn can benefit the economy with their increased productivity.


The overall impact of this change in demographics might not be as positive as it seems to be because the overall equity has shifted in the hands of people with home ownership. Regardless, it is an important change for the average American family which can now escape the dilemma of not finding a home in time.