The uncertainties in the real estate market are causing people to shell out big bucks – sometimes over $10,000 per month – to rent properties, instead of purchasing them, according to the New York Times. The report followed several couples who are prime examples of this trend, like Aimee Raupp-Temple and her husband, Ken Temple. They chose to rent instead of buy when they moved to the suburbs of Connecticut three years ago because they weren’t sure if they were going to stay. Now, after realizing that they did in fact like the area, they still decided to rent instead of buy.
The couple, whose patriarch works in finance, did so because they are convinced that home prices would continue to decline.
Aimee told the New York Times: “Our parents’ mentality was, you bought your home and that was your major profit place. Now, I think people are a little more cautious.” In fact, the real estate market appears so uncertain that many people are spending between $5,000 to $10,000 a month to rent because it actually feels like a safer bet than buying. This is especially true for suburban counties like Fairfield and Westchester, where median home sale prices can be above $1 million. The demand for single-family rentals is up not just in Connecticut, but across the broader region surrounding New York.
Many potential buyers are waiting to see how the market will pan out. Their concerns are new federal tax laws and general unease about the economy in an environment where the Fed continues to hike rates.