Times they are a changing. If you've been paying attention to the real estate market in your area over the past few years, you've probably seen trend: overall, is buying a House and renting is.
The reasons for this trend is a lot; There are some obvious, some a little less. But they all point to the economy and its collapse a few years ago. Don Bailey, President, emerging companies in Allstate Insurance Co., explains the growing trend to hire as a fundamental change in the "American Dream".
"In the late 1990s and early 21st century, lower unemployment rates and mortgages that require little or nothing down made buying a House easily achievable reality. American families could have their children 2,5, minivan and Italianate, "says Bailey.
"With the collapse of housing markets at the end of 2007, which set off the nation's worst economic crisis since the great depression, Americans the reality has changed and so too did their definitions is a fundamental precept of the American Dream. In the wake of the housing market, the State quickly moved the real estate market in the u.s., lending standards have tightened, and most Americans have been left, I'm looking to rent vs. Buy. "
This Trend continues today, according to Bailey, as single-family home construction hit a record low in 2011 and many homes are still working to replenish their inventory, while at the same time, tenants, the market is likely to increase.
"Going forward, more and more tenants will be individuals, families with one parent, unmarried partners and unrelated roommates," says Bailey. "Immigrants and minorities are also expected to be a growing share of households in those newly created-from 2001 to 2010, contributed more than three-quarters of new tenant 3.9 million households."
In addition, two simple factors Bailey indicates that over the next 10 years, will add to the population of the tenant: increases the overall population, and increases in the elderly. The population growth is expected to increase the number of renter households for more than 3.6 million. As the Baby Boom generation continues to age, says Bailey, the sheer size of this group is going to push up the number of renters over the age of 65 years by nearly 2 million, as rentership tend to have interest rates of growth among older households.
Bailey adds that while the increase in rent, it seems clear, unfortunately, most tenants do not protect their personal property with proper insurance.
"More than half of the tenants put themselves at risk for not protecting their home in the same capacity that car owners and homeowners," says Bailey. "And when three-quarters of auto insurance, renters insurance is overlooked."
At the end, Bailey noted that renters insurance protects personal common risk of theft, fire, smoke and water damage-protection, which can come in handy in case of extreme weather conditions.
"The disaster does not discriminate between owners and tenants. No new American Dream worth protection? "
Are prepared as tenant include ensuring proper tenants insurance to protect your belongings, stolen, or damaged.
No matter what you are renting to make sure that you have the right renters insurance to protect your stuff if stolen or damaged.
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