Brian Kuderna, a certified financial planner and author of What Should I Do with My Money? Helps prospective homebuyers buy with confidence despite market turmoil It details the important questions you should ask.
A handful of billionaires have joined the growing list of Americans who are delaying or ignoring homeownership.
A Wall Street Journal report published Monday highlighted the alarming rise in the number of billionaires choosing to rent instead of owning their homes, despite the ability to purchase more expensive real estate. .
George Gugunin, the billionaire entrepreneur who argues that value and price do not match in today’s market, is also on the list.
“From a price-to-value perspective, supply is close to zero,” he told the magazine.
Almost half of renters spend more than 30% of their income on housing, Census Bureau survey finds
A “FOR RENT” sign is posted outside a home in the area of St. Clair Avenue East and Mount Pleasant Road. In Toronto. (Lance McMillan/Toronto Star via Getty Images/Getty Images)
Instead, he chose to rent a high-rise apartment in Manhattan for $19,000 a month.
Bloomberg covered a similar story last year, documenting the dramatic rise in real estate prices in parts of Jersey City that were once owned by the wealthy when average prices were low.
However, that was in 2015.
“Five years later, however, 104 millionaires rented homes in Jersey City, according to an analysis of U.S. Census Bureau data by rental marketing software company RentCafe. It’s not just New Jersey. There are also millionaires in Washington, D.C. New Jersey isn’t alone in the number of wealthy people: In San Francisco, that number jumped by an astonishing 1,629 percent, from 41 to 121 in the last five years. he said in part, adding that the overall number was not yet “huge.”
Rental prices may be lower in winter, but be aware that your options may be limited, experts say
A “Homes for Sale” sign in the Capitol Hill neighborhood in Washington, DC, USA on Tuesday, July 30, 2024. According to personal finance company Bankrate, renting is more affordable than buying a home in all 50 states. (Tierney L. Cross/Bloomberg via Getty Images/Getty Images)
The same report shows that the number of high-income households, or households with incomes over $150,000, doubled between 2015 and 2020.
That number continues to grow.
Between 2018 and 2022, the number of renters among people who earn more than $750,000 per year will increase by 10.5%, and the number of renters among people whose net worth ranks in the top 5% will increase, according to data analyzed by The Wall Street Journal. increased by 3.7%.
A billionaire couple who previously owned a home told CNBC that they prefer renting because they can “outsource” repairs to a property manager, enjoy a walkable environment, and have more time to spend on household chores after downsizing. He said this is because it can shorten the time.
However, this trend is not happening everywhere.
“As an agent with 41 years of experience in the real estate industry, I don’t see this trend in the Houston area,” said Cindy DePalermo, a Texas-based real estate agent. I know,” he said. Tuesday on FOX News Digital.
Small businesses are being forced out of business due to rent increases
Barron’s Roundtable panelists discuss America’s housing crisis amid potential interest rate cuts.
“I would describe these people as people who travel a lot and like not having to maintain a home. Also, especially in urban areas, choosing to rent puts you closer to more upscale amenities. I think you can.’ Even if you buy it, it might be far away or unavailable,” she added.
Renters in every major U.S. city have money on their side, according to a study by personal finance firm Bankrate.
“Nationwide, the cost of buying a typical home is nearly 37% more than renting month-to-month. Rent increases have slowed across the U.S. over the past year, leading to soaring home prices and rising mortgage rates. , combined with low housing inventory, continues to push home prices higher, creating strong headwinds for aspiring homeowners,” the magazine wrote in April.
When asked about the rise in high-income renters, Mark Hamrick, senior economic analyst at Bankrate, told Fox News Digital: “Most of the people who have real wealth… Because they don’t face the same affordability, they will choose to buy a home.”The challenge faced by disadvantaged people is that they are a smaller group, so the flexibility that comes with renting is the most An argument can certainly be made that it is attractive. ”
“Homeownership is the primary path to wealth creation in the United States, but those who are already wealthy may choose to allocate their funds elsewhere. Most Americans associate homeownership with the American Dream.” That’s absolutely true. Our Bankrate research shows that by a narrow margin, wealthy people are able to retire and build successful careers, and they can look at these options from a variety of perspectives.
CLICK HERE TO GET FOX BUSINESS ON THE GO
The overwhelming majority of people currently renting say they can’t afford to buy a home, and 54% of them are pessimistic about reaching their homeownership goal, according to a new CNN poll. It states that there is.
