Moneybox: The Rent Isn't Too Damn High

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moneybox The Rent Isn't Too Damn High Why it's good news that more Americans are renting rather than buying homes. By Annie Lowrey Posted Tuesday, May 31, 2011, at 5:51 PM ET Today's news that national housing prices have double-dipped to a new recession-era low is grim for homeowners, home sellers, banks, builders, and the president. Prices are down in 19 of the 20 biggest metro regions--Washington, D.C., is the exception. And given the 1.9-million-house backlog in the foreclosure pipeline, nobody expects prices to rebound any time soon. But these data can be interpreted another way. The American economy is making a significant shift from buying to renting, and that may ultimately be good news. According to a USA Today analysis of Census data released this weekend, since 2006, the number of households that rent has grown by about 700,000 a year, while the number of households that own has fallen by about 200,000 a year. One reason is macroeconomic. The unemployment rate remains high and wages are down, meaning many people simply cannot afford to buy a house. Plus, nobody wants to take the risk of selling into a down-market. But there are also indications that Americans are electing to rent--and that is a very good sign. To continue reading, click here. Annie Lowrey reports on economics and business for Slate. Previously, she worked as a staff writer for the Washington Independent and on the editorial staffs of Foreign Policy and The New Yorker. Her e-mail is annie.lowrey@slate.com. Join the Fray: our reader discussion forum What did you think of this article? POST A MESSAGE | READ MESSAGES Also In Slate Rep. Weiner Won't Deny Twitter Photo Is of Him German Communities That Murdered Jews in the Middle Ages Were More Likely To Later Support the Nazis The Incredible Talent and Tragic Decline of Gil Scott-Heron, the "Godfather of Rap"	Advertisement
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