Just one more reason why you’ll be happy you’re renting: Despite gains in the real estate market and increases in home prices, millions of homeowners still owe more on their home than their home is worth.
When the housing bubble burst a few years ago, home values dropped dramatically. Homeowners lost upwards to 60 percent of their home’s value in just a matter of years. Salaries were cut and employment dropped, but many still had to pay their mortgages on a home that was no longer worth the price.
As a whole, American homeowners are missing $428 billion of equity that has yet to be recovered. According to CoreLogic, a residential property analytics company, this puts 7.1 million people, or nearly 15 percent of all homeowners, underwater on their mortgages. Unfortunately, many still have a long and taxing road to recovery, if they recover at all.
The Chief Economist for CoreLogic says, “In just the first half of 2013, almost three and a half million homeowners have returned to positive equity, but the pace of improvement will likely slow as price appreciation moderates in the second half.” While many remain optimistic from the major improvements in the housing market, homeownership may no longer be an option for millions of Americans.
This daunting reality has encouraged more and more people to rent instead of buy. And with the headache that so many homeowners will continue to face in the future, there’s no better way to enjoy your home than to rent. Renters can live in nicer apartments for less – without the fear of losing their house.
Also, for those who aren’t ready to take on the extra costs that come with owning a home – like maintenance, repairs, homeowners insurance, and much more – renting is the perfect option for your active lifestyle.
Arcadia Run offers the best of apartment living at a huge pricing advantage. Renters live in homes with the best, most up-to-date features, and only pay a fraction of what homeowners are currently paying. Within the next year, Arcadia Run residents will also enjoy a jogging trail, a playground, a fitness center, and a resort-style swimming pool.
All of this without the stresses of homeownership, what could be better?
Source: Money Watch – CBS News