The other day on twitter, I dished that new home sales are down a staggering 80%. That’s an incredible drop since the boom era! It’s due largely to the fact that people just simply cannot pay back the loans they took out on their homes. I’ve been hearing a lot lately that homeowners were given loans without any proof that they had the income to pay it off. This was possible because people were bundling these “toxic assets” and selling them off to other investors – pretty much zero accountability for their investments.
Plenty of Americans are aware of this and they’re also aware that the housing market is currently in an injured state. Property values are down and don’t seem like they’ll be on the rise anytime soon. So as a general rule of keeping your money safe, Americans are staying out of the home ownership business. In fact, actual home ownership is down to its lowest level since the housing demise in the late 90s, now sitting neatly at the 33rd percentile. (This information all comes from a very informative article posted in Yahoo Business News.)
Instead of that, people are renting, and renting HARD. The market for rental properties such as Apartment Building has sky rocketed upwards of 115%!
I urge you to read the entire article HERE.