For decades, those with mortgages looked down their noses at those of us who rented. Along with the snooty stares grew the perception that renters were less dependable, poorer, ready to move at a moment’s notice, even shiftless. Perhaps one of the pluses rising from the ashes of the mortgage meltdown is the realization that, at least, many of us were being fiscally responsible.
Nearly 37 million families rent instead of own property. While affordability may drive part of their decision, for many its about lifestyle choices. Renters avoid the hidden costs of having a mortgage; they have proximity to urban amenities; they want to maintain a simpler, less cluttered life; or they want to connect to a diverse group of people.
Long before the financial crisis though, renters provide communities with value just as homeowners do. Without rental properties, businesses can have difficulties attracting workers, particularly at the various income levels required for the occupations that sustain any community. Since prospective employees put the length of a commute in their top 6 decision factors in accepting a job, renting can offer critical talent the opportunity to live near their workplace. Additionally, opportunities to rent reduce urban sprawl and revitalize communities, even making them “green”. Researchers are now dispelling our misconceptions about renters recently finding that mobile economies are actually thriving economies. And as for the mortgage-holding holdouts, the Center for Housing Policy found that affordable rental units cause neighboring property values to remain stable or increase.
Need some support with the mortgage? Take a renter to lunch.
Filed under: Financial
