Rental demand may improve for years

Rental demand may continue in the coming years.

Consumer rental demand could remain high for the next several years, as more Americans are still not in a financial position to make a home purchase. This information may help commercial property managers, as some households will likely focus on renting in the long-term.

There may be as many as six million new renters entering the market in the next 10 years, an infographic from the Bipartisan Policy Center noted. This is because of significant issues with credit and other finances which may occur in the near future.

"Credit for homeownership borrowing will likely be tighter and potentially more expensive, relative to earlier times," Barry Zigas, director of Housing Policy for Consumer Federation of America, told HousingWire. "Families will likely have less wealth because the rising generation is starting with less wealth."

The infographic also noted that more older Americans plan on looking for a smaller home, while there is still a high level of consumers who lost homes due to foreclosure that now flood the rental market. Younger people also play a role, as some who plan to purchase a home may do so at some point in the future, but are still looking to rent in the short-term.

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