We were always told to own something rather than rent, but now that our economy is in an upheaval and everyone is struggling just to swim in their debt, renting has become more appealing. Minorities and those with lower incomes are believed to be the hardest hit with the sub-prime mortgages focused in their direction. Sub-prime meaning “bait and switch.” So many people took the mortgage dream that Bush set on the table, but are now suffering from the fine print.
According to the New York Times between now and 2005, just as many people who decided not to buy a house have begun to rent. A major influx of 1.5 million renters from 2005 to 2007 alone. You might say, no big deal to the numbers, but when you weigh that information against the fact that Harvard’s Joint Center for Housing Studies predicted an increase of 1.8 million renters between 2007 and 2015…that’s right 2015, it sets off some alarms.
Other information in the New York Times story states that almost three million minority families were able to get mortgages between 2002 and the first quarter of this year. But, then they make up the largest amount of foreclosures which then will prevent them from being able to rent something in a decent neighborhood or at all. Credit checks tend to pick up foreclosures and things like that when you’re trying to find a place to stay. Yes, next, we will be weighing the amount of families that are homeless. To read the full story, go here.