Thread: Renters the Next Mortgage Crisis

Today, there’s another mortgage crisis in the works—that is, NOT having one—choosing to rent when you can afford to buy; choosing to forgo building equity in a home as a major source of retirement security—something that may be more necessary now than ever before with a soft stock market and low interest rates. This emerging crisis is not yet at the car crash stage– more at the reckless driving without a seat belt stage. There is time for Americans to resolve this one, but they must change their perspective on home ownership before it’s too late.

The Next Mortgage Crisis - Forbes

To some degree the unemployment situation contributes to this as folks are forced to seek employment out of their home state and have no confidence that their new job is going to last. A person I know bought a home in Georgia, was laid off, could not sell his home so he rented it as he moved to another state where he found a job. He rented a house there, about a year later he lost his job, he then found another job in another state. After about a year and a half he lost that job as well. When you have employers placing little value on people it does not instill the confidence in some to take the chance and invest in a home. Especially when the market is such that selling a home is harder than it used to be.