From Fox Business to CNBC Squawk Box to the New York Times, you'll find stories about a cultural, social, and economic shift in the demand for and perception of renting.
The impetus for these recent reports is a MacArthur Foundation survey conducted by Hart Research Associates earlier this year.
The results show that the housing crisis, as well as an increase in the value placed on mobility, has created a shift in American's views on renting. Robert Shiller, Yale Economics Professor, and co-founder of the S&P/Case-Shiller index, went so far as to say in a recent New York Times op-ed, "Renting, which connotes mobility, might come to be identified with a high-status lifestyle in the new economy."
Here are some key findings from the study:
• While 7 out of 10 adults still aspire to own their own their own home, 57 percent believe that "buying has become less appealing," and 54 percent believe that "renting has become more appealing."
• 47 percent of current home owners envision themselves renting at some point in the future. This percentage increases with education and income.
• 59 percent of current owners and 67 percent of current renters believe that "renters can be just as successful as owners at achieving the American Dream."
So what? Good question.
Here's the "so what": San Diego is one of the best places in the country to own a rental. Let me explain why:
1) There are a lot of renters here. In 2011, San Diego was third on the list of metros with the highest share of households that rent (46.7 percent coming in behind mega-metros Los Angeles and New York).
2) There's going to continue to be a lot of renters here.
Richard Florida, the director of the Martin Prosperity Institute at the University of Toronto's Rotman School of Management, and the Global research professor at New York University, believes that areas with a higher share of renters have more innovation, productivity, and economic growth.
Why? Mobility. Renting invigorates flexibility and makes it much easier for talented people to move to their dream job or to areas of economic opportunity. San Diego fits this bill, with Carlsbad being North County's primary business hub.
Schmidt can be reached at Chris Schmidt [email protected]
The impetus for these recent reports is a MacArthur Foundation survey conducted by Hart Research Associates earlier this year.
The results show that the housing crisis, as well as an increase in the value placed on mobility, has created a shift in American's views on renting. Robert Shiller, Yale Economics Professor, and co-founder of the S&P/Case-Shiller index, went so far as to say in a recent New York Times op-ed, "Renting, which connotes mobility, might come to be identified with a high-status lifestyle in the new economy."
Here are some key findings from the study:
• While 7 out of 10 adults still aspire to own their own their own home, 57 percent believe that "buying has become less appealing," and 54 percent believe that "renting has become more appealing."
• 47 percent of current home owners envision themselves renting at some point in the future. This percentage increases with education and income.
• 59 percent of current owners and 67 percent of current renters believe that "renters can be just as successful as owners at achieving the American Dream."
So what? Good question.
Here's the "so what": San Diego is one of the best places in the country to own a rental. Let me explain why:
1) There are a lot of renters here. In 2011, San Diego was third on the list of metros with the highest share of households that rent (46.7 percent coming in behind mega-metros Los Angeles and New York).
2) There's going to continue to be a lot of renters here.
Richard Florida, the director of the Martin Prosperity Institute at the University of Toronto's Rotman School of Management, and the Global research professor at New York University, believes that areas with a higher share of renters have more innovation, productivity, and economic growth.
Why? Mobility. Renting invigorates flexibility and makes it much easier for talented people to move to their dream job or to areas of economic opportunity. San Diego fits this bill, with Carlsbad being North County's primary business hub.
Schmidt can be reached at Chris Schmidt [email protected]