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Well David Stockman withstanding the US housing market is showing strength across the country and.
Our next guest says don't overlook the rental market which is on fire that leads to the question where -- the best areas for renting and where should you.
Not -- but by has some not she is senior director of research in the hot -- -- market -- Joining us now with a first on Fox Business look at their latest report.
-- pencils a bunch of things here but let's get right to what you feel what's the most important aspect of it.
Where to rent where to -- -- David great to be with you on the program.
First of all housing in general is two tale of two improving markets both the for sale housing side and the -- side.
And the rental market the apartment -- market has fully recover to pre recession levels so it really is on fire as you -- list.
So it comes down to a formula of lifestyle flexibility.
And really having conviction as to whether the for sale housing market in where you live has bottomed out or not.
In the last cycle it was there -- so much speculation and really betting.
On buying a home.
That says created the frenzy in the bubble that we were in this time around we don't see that happening so people are making the decision far more oriented toward their -- -- and there.
And their fundamentals instead of speculation.
Well has some one way in which you are similar to David Stockman is that you look at a lot of the young folks out there that are really -- with all this school debt.
They're also concerned about jobs like they'd ever have been before and they are looking to rent for quite a long time.
That should affect your -- decision whether your think you -- rental property.
There you're absolutely right is still very tough to qualify for home loan.
But we are creating two million new jobs a year right now and young adults aged between eighteen to 34 years old.
Are capturing about 40% of those jobs in the last twelve months professional and business services added about 500000 jobs really -- -- 480000 jobs.
So a lot of young professionals people that -- have college degrees are getting relatively well paying jobs and and some of them are beginning to buy homes were beginning to see that in our various surveys but the vast majority want the flexibility direct.
Let me just jump in and when we -- -- vs rent it was definitely.
Step that you know scaled overtook -- that the East Coast and then rent vs buy.
Was mostly on the West Coast so I I had asked -- you know the locations and let's just talk about those in particular.
Looking at the rent vs buy and that's where we -- see it particularly.
Weighted toward the West Coast is that.
At Liz that's driven by the fact that house prices and a lot of the West Coast markets.
Are still so high.
That for people to compare their monthly ran verses of mortgage payment.
It still makes sense to -- and frankly it's their only option that's why you see there homeownership rate not lot of those markets being a lot lower than the national average.
But you also have markets like Denver markets like -- of course New York.
That Portland Oregon.
Much higher mortgage payments than average rents then conversely.
You have markets like Detroit Atlanta Cleveland Orlando.
Where actually buying a home and making them median price down mortgage payment per month is less expensive than renting.
That doesn't necessarily mean you can go body go Latin by home because of their all the factors that we talked about earlier but that's how they've they've basically.
Line up nationally.
Has -- I find managers sit in by a rental property -- go in with a group.
Of investors who wanna buy an apartment building or do -- look for single apartments to -- David we're seeing the full spectrum of institutional investors very actively buying apartments as well as individual investor that are buying 51020.
Unit apartments across the country.
Given the low interest rates and the prospects of continued rapid growth.
It's been a very attractive investment yielding anywhere from four to 6% depending on location -- so we're seeing the full spectrum mobile partnerships and individual investors as as well as prominent institutions buying apartment building's facade and -- great to see is some thanks very much for coming -- appreciate it thank you so much thanks for.
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