More NJ Families Will Rent Instead Of Own [AUDIO]
With high unemployment and home foreclosures rising, more people are giving up the dream of owning a home -- instead opting to rent.Real estate expert Jeff Otteau of Otteau Valuation Group says the housing market here in New Jersey is shifting more towards a European model, where there will be an increasing number of renters and a lower percentage of homeowners.
"We are also going to see that those renter households will increasingly be located near to jobs, near to transporation and trains."
It's a trend that is likely to continue in the new year as housing analysts have dubbed 2012, "The Year of the Landlord."
"With a majority of households in the state childless, at least 65%, coupled with slow income growth and tight lending standards...we are probably about 15 years away from getting back to the peak housing prices that we saw in 2006."
The increase in rentals will help the construction industry and create more jobs, but it won't really help the housing market.
"The long term picture here is that we probably won't get back to the robust housing booms that we've seen once every ten years over the last few decades...this is going to be the new norm for many cities and towns across the country" said Otteau.