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Multi-family housing starts rose by 21% in February, while single-family home construction fell 10%, according to the Commerce Department. Sales of single-family homes fell, too.
Gary Painter, professor at University of Southern California, says that this continues the post-recession trend from buying to renting, but one that may be coming to an end:
”I think people are still cautious right now, but things will change shortly if the economy improves.”
Rising rental prices – up 2.5% over the last year – may also prompt reconsiderations. And if mortgage rates remain favorable and the job market continues to improve, would-be renters may decide that it’s better to buy than rent, after all.