All posts tagged: king of your own castle

The Great American Aversion Toward Renting

The Great American Aversion Toward Renting

When the Federal Reserve began jacking up interest rates in 2022, home sales cratered almost overnight; inventory dried up; the housing market “froze.” People who have mortgages with interest rates below 4 percent—which is more than 60 percent of homeowners—aren’t going anywhere. They’re not selling their houses. They’re staying put. The current availability of homes for sale is about 36 percent lower than before the pandemic; this past October, home sales dropped to their lowest level in more than 13 years, and in November, the share of homebuyers looking to relocate to a different metro area was at its lowest level in 18 months. People who own homes have become so reluctant to move that they’re likely to pass up job offers in other cities, one study found. If swapping a low mortgage for a much higher one is plainly undesirable, the way out of the problem—and into a new space—seems plainly obvious: renting. Now is a terrible time to buy a home, but renting would allow more Americans to relocate without becoming “house poor” …