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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Live2Sail who wrote (42556)	10/4/2005 11:04:38 AM
From: GraceZ	Read Replies (3) \| Respond to of 306849

One of the problems with rents is something I came across the other day, renters are in far worse shape than homeowners (which everyone here seems to agree have debt obligations at historic highs). You can see that things have gotten a little better for renters since 2001 when the financial obligation ratio reached an all time high of 31.75 but they are still at a very high FOR by historic measures: economagic.com Compare that to the ratio on homeowners, 16.37, as opposed to the renter's 28.87. The historic low for renters is under 23: economagic.com Rents aren't going to be able to go much of anywhere until renters can shore up their financial situation or more people who are in good shape are converted into renters. Part of the change has to do with the fact that many renters who had a good enough financial situation to move from renter to homeowner have converted to being homeowners. This leaves a pool of renters who are in worse shape.