When the financial crisis struck, many homeowners took out large mortgages.
Some took out $100,000 or more, but most bought a home with the intention of renting it out.
The housing market collapsed during the crisis, forcing many people to downsize, especially those with families and children.
Many buyers now consider themselves renters.
But how to prepare for the market meltdown and the rental boom?
“If you are not going to own a house, you should be getting an apartment, whether you have a mortgage or not,” said Tom Cairncross, a real estate broker in the New York City area.
The boom has created a new market of renter-bundlers who don’t have to live in a home.
“I have a couple who own two apartments, and I’ve gotten calls from people saying, ‘I have $300,000 and I’m looking to move out and get an apartment.’
They want to buy one,” Cairnlross said.
He said most renter bargains have the same price: $2,000 to $3,000 a month.
The difference is that these bargains include a down payment and a downpayment subsidy that is usually $500 a month, or $10,000.
The biggest seller of new-home rentals is the rental industry.
A recent report from the Mortgage Bankers Association said that the rental sector accounts for nearly half of all new home sales.
The report said that renters make up more than half of the rental market in some states.
The U.S. Department of Housing and Urban Development said that between 2008 and 2016, nearly 1.5 million new homes were built in the country, and nearly 4 million new rentals were added.
The number of rental apartments in the U.N. estimates that there are around 9 million new units in the market.
In addition, more than 300,000 new housing units have been added in Canada, with another 70,000 in New Zealand.
Renting prices are down across the board in some areas.
“The rental market has been on a tear since the Great Recession, but the housing market has actually slowed down,” said David J. Zappone, chief economist at Wells Fargo Wealth Management in New York.
“There’s a lot of speculation going on.
The housing market is very much alive.
You just need to be ready.”
The housing bubble and the renter boom can make for a difficult time in the midst of a financial crisis.
Many people are looking for rental accommodations.
Many are looking to sell.
And some people are renting because they can’t afford a home, said David A. Schwartz, an economist at the National Association of Realtors.
He said there is a lot to learn from the housing bubble.
The economic downturn has put downward pressure on home prices and rents.
In New York, the median price for a single-family home fell 15 percent last year.
He added that prices for two-family homes have been on the rise in many areas.
Renters often can’t pay the full price, and many find themselves renting apartments or condo units instead of a home for the first time.
That’s not a bad thing, said Amy Miller, an associate professor at the University of Virginia.
It’s just different than renting a home and living in a house.
“We know that rents are not what the buyer is paying, and it is a different story when the seller is the renumer,” she said.
“It is more complicated.
I think people are learning that it is much easier to sell a house than it is to rent a home.”
Some rental markets have been more successful than others.
In Seattle, prices for condos have risen 10 percent in the last year, according to data from Zillow.
In San Francisco, prices have increased 18 percent, according the real estate site Zillows.
Renters have been finding a lot more good rentals.
The median price in the San Francisco Bay Area has gone up 19 percent since 2012.
“You have these wonderful, affordable, great homes that are in great condition,” said Karen Johnson, a rental market expert at RealtyTrac.
She added that it’s important to understand the market before buying.
“Rents are not really a big factor in what is going on,” Johnson said.
A lot of people think they are the new buyers, she said, but it’s a mistake.
“People are still buying houses and apartments, but renters are buying condos.”