Perhaps you have given thought to buying a house with the purpose of renting it out, presumably at a profit. A new report from Freddie Mac indicates it may be time to stop thinking and start doing.
The government-sponsored mortgage agency said the rental market for single-family houses in the U.S. has swelled by 16% to more than 11 million units since 2007, making it the fastest growing housing option in the U.S.
Spurring growth in the rental market for single-family houses are a number of factors. A still uncertain jobs market, negative equity from the last housing bubble, and a large amount of foreclosures means there are more renters. Additionally, younger Americans reportedly are more willing to rent than previous generations because of the flexibility a rental unit provides.
This trend is expected to continue unabated over the next ten years and is something that home buyers should be able to take advantage. The Bipartisan Policy Center estimated an additional five to six million new renter households will be created during the next 10 years.
Renting out your home could be a smart move, especially considering the current market conditions that show a low level of supply and home prices that are still below their peak levels in most part of the country.
When you rent out your home, you are able to pay down your mortgage each month while, hopefully, property values continue to climb. You will therefore be building true wealth and that can go a long way towards funding a future lifestyle.