Opinion: Embrace the Non-Traditional Market
Real estate professionals should be aware of unconventional home buying options such as co-purchasing with non-romantic partners.
NEW YORK – Today’s residential real estate market is much different than it was just a decade ago. In July 2006, the peak of home prices was $230,200. Today, the national average is $417,700 in the last quarter of 2023, according to California Association of Realtors data.
As housing has become more expensive, renters have decided to stay renters for longer, while others have said they prefer renting because it provides them with greater flexibility, a simpler lifestyle and fewer responsibilities. Older adults are shifting to urban rentals rather than suburban homes to avoid maintenance expenses. Others work remotely and no longer need to live within a commutable distance to their workplaces.
U.S. Census Bureau data show the number of renters since 2010 who earn more than $200,000 has increased four-fold, and many are more interested in renting homes in strategic locations.
BrightMLS systems saw a 12.4% year-over-year increase in rentals to 70,829 listings in 2023. A JW Surety Bonds survey found 13% of respondents have engaged in non-traditional, co-purchasing agreements with non-romantic partners, and about 48% are considering the option.
Co-purchasing enables buyers to share the cost burden and access better housing options and investment opportunities, such as transforming a property into rental income down the road. Real estate professionals would be wise to review current market trends and non-traditional paths to homeownership when talking with prospective buyers. Clients are in need of professionals with innovative solutions and flexible approaches to today's housing market.
Source: HousingWire (03/18/24) Lucarelli, Michael
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