Today’s mortgage news focuses on generation Y and single people starting up the next real estate boom, and whether or not a lot of rentals ruins a neighborhood.
Some Home Owners Say Rentals Are Ruining Neighborhoods
The New York Times ran an article on how the increase in rental homes is changing the feel of the neighborhood, and not always for the better.
The homeowners’ major complaints are:
- Tenants aren’t as committed to the neighborhood such as a watch program or neighborhood cleanups.
- Tenants aren’t going to be as committed to the upkeep of the property, such as landscaping and painting.
- Tenants don’t often join into community programs such as volunteering for the library or participating in local government.
- Tenants often don’t get to know their neighbors, and the sense of a neighborhood gets lost.
- There is an increase in crime of all sorts when there are a lot of rentals.
Singles Make Up Quarter of All Buyers
Realtor magazine (Realtor.org) is reporting that there is a rise in single people purchasing homes.
More Americans are opting to live alone, with single buyers making up a quarter of all home purchases last year, according to the National Association of REALTORS®. In the U.S., there are 33 million one-person households, and living solo is becoming an international trend, MSN Real Estate reports.
Why are so many living alone? People are marrying later, divorcing more, and living longer, sociologists say.
The homebuyers are also ensuring their home has good resale value, and asking to buy into good school districts. Buying solo does have some difficulties such as obtaining financing which is easier for dual-income purchasers.
The Next Real Estate Boom: Get Ready for Housing, Gen-Y Style
Yahoo Finance is reporting that Millennials are starting to buy houses, and they’re not interested in McMansions. Their priorities are usually their careers, and being near hubs so they can take advantage of travel opportunities, experiences and friends.
Sherry Chris, CEO of Better Homes & Gardens Real Estate and co-author of the new book Next Generation Real Estate, notes that we care about Gen Y when it comes to real estate because across the country there are 100 million people in this category — a third of the population. And despite the stereotype of millennials being lazy and not caring about home ownership, Chris says that over 70% of those surveyed said they’d like to buy a home in the next two to three years.
Many are buying homes with their partners before they marry. And Gen Y are more interested in functionality rather then a large home. Plus they want a property that fits their lifestyle. So if they’re gone a lot, they don’t want a lot of lawn that will need to be watered and mowed.