November 11, 2024
How the market has changed and how loan officers can take initiative.
Wednesday, November 13th – not Tuesday or Friday.
Click HERE to register for this LIVE webinar
Recent data shows a remarkable trend: rental households are growing at triple the rate of homeowner households. In the third quarter, renter households increased by 2.7% – the second-largest year-over-year gain since 2015, while homeowner households grew by just 0.9%. The national rentership rate holds steady at 34.4%.
This growth pattern has been consistent for four consecutive quarters, primarily driven by home purchasing costs outpacing rental costs. While these numbers might seem alarming, they’re not unprecedented in historical context.
The current situation stems from several factors:
Without policy changes addressing these issues, this trend is likely to continue. However, this presents an opportunity for innovative lenders.
Here’s a practical strategy for lenders looking to capitalize on this market:
The current market situation is particularly interesting when viewed against recent economic history:
A concerning indicator is the S&P 500’s price-to-sales ratio, currently at 3.0 – a level not seen since the last housing crisis. This high valuation raises questions about potential market corrections.
The current market presents both challenges and opportunities. Success will depend on adapting strategies to changing market conditions and understanding the evolving needs of potential homebuyers.