More Choose to Rent, Despite Record-Low Mortgage Rates

homes for rent
homes for rent

Despite the most affordable buying market in decades, households across the country are slowly choosing rentals versus homeownership, signaling a positive economic trajectory for the multifamily sector, according to Freddie Mac's October 2011 economic outlook report, released Monday.

In the year ending June 2011, the Census Bureau reported a net increase of 1.4 million households that moved into rental housing, a 4 percent rise in the number of tenant households.

The U.S. homeownership rate fell about 1.5 percent over the past year, according to Freddie Mac's report.

Hessam Nadij, managing director of research and advisory services for Marcus & Millichap, said in the August issue of HousingWire magazine that "apartments, which are considered part of the commercial real estate sector, are well ahead of retail, office properties and industrial properties in the recovery because of the release of pent-up demand."