Not everyone is in a position to be buying a house at any given time, though. Providing housing at a less-than-the-very-top-of-the-market-value is still a necessary service that can benefit both parties.
The issue is the hoarding of that resource in certain areas, and the psuedo/full-on price fixing to max out returns
It’s true that it everyone is in a cash position to buy a house, but that’s made worse by housing being so expensive. And housing is expensive in part because of the hoarding and rent-seeking behaviors of landlords and investors. So renting is a “solution” to a problem it partly makes itself.
If people don’t have cash to buy houses, I’d look at that as a problem for lenders. Someone else renting out the house doesn’t necessarily have to be the only solution. I don’t think it’s possible to eliminate renting because we need some very flexible housing / short term housing.
But if we imagine a world where renting is incredibly restricted, perhaps to 4-unit apartments and up, instead of every single residence on the market, I think we would see a more affordable market where more people COULD be in a position to buy a house.
Not everyone is in a position to be buying a house at any given time, though. Providing housing at a less-than-the-very-top-of-the-market-value is still a necessary service that can benefit both parties.
The issue is the hoarding of that resource in certain areas, and the psuedo/full-on price fixing to max out returns
It’s true that it everyone is in a cash position to buy a house, but that’s made worse by housing being so expensive. And housing is expensive in part because of the hoarding and rent-seeking behaviors of landlords and investors. So renting is a “solution” to a problem it partly makes itself.
If people don’t have cash to buy houses, I’d look at that as a problem for lenders. Someone else renting out the house doesn’t necessarily have to be the only solution. I don’t think it’s possible to eliminate renting because we need some very flexible housing / short term housing.
But if we imagine a world where renting is incredibly restricted, perhaps to 4-unit apartments and up, instead of every single residence on the market, I think we would see a more affordable market where more people COULD be in a position to buy a house.
Interest rates are more of a significant variable. At 7%+ interest, renting will be cheaper.
There are other scenarios besides “not being able to afford to buy” that would make people lean towards renting.