Tuesday, June 28, 2011

Urban Rentals Rising

Relevant to today's post about aging suburbia, the Urban Land Institute (ULI) speculates about the future for renting:

“As jobs come back Gen Y people will be forming households -- there is a huge pent-up demand in household formation,” [John McIlwain] told the Business Times. “The anticipation is they are not going to buy, they are going to rent.”

I doubt Gen Y will be renting en masse in the suburbs. As for home ownership, that's expected to drop. You can see early signs of the trend in downtown Pittsburgh:

Apartments are in, condos are out, in Downtown.

After a condominium building splurge five to six years ago, developers are now bullish on apartments, in large part because of financing and market realities.

If it makes more sense to rent than to buy in Pittsburgh, then households with mortgages are in serious trouble. The suburbs continue to get clobbered by the Great Recession.

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