Is Renting The New American Dream?

CBS Evening News: Number Of Homeowners Declining Sharply While Renters Soar

(CBS)  For the last half-century, Hollywood has idealized the American Dream - owning a home with a white-picket fence.

But these days there's a new definition of "home sweet home," reports CBS News correspondent Sandra Hughes. Lynn and Luke Maxcy's dream is to rent a nice apartment in Los Angeles.

"I don't know if the American Dream is to rent forever, but definitely it works for us right now," said Lynn.

During the first quarter of this year, the percentage of households headed by homeowners had its sharpest decline in two decades, while the number of people choosing to rent soared.

Right now, renting is red hot.

"We'll call on a place and somebody will say, 'Yeah, we'll show it to you' and then we'll call back the next day to set it up and they say 'Oh sorry, we've already rented that,' " said Luke.

At Westsiderentals.com, an online Los Angeles rental search service, owner Mark Verge says his market is exploding.

"[There are] enormous amounts of renters coming through here that we haven't seen before. People of all ages that used to be home buyers."

The increasingly unstable housing market and continuing foreclosures have turned even those with the means to buy toward the rental market.

"Rent is no longer a four-letter word, and for many people that's a very attractive and very rational option," said Nic Retsinas, executive director of the Joint Center for Housing Studies at Harvard University.

But for those forced into this competitive rental market by foreclosure, the going is tough. Landlords are now more likely to reject potential renters with bad credit scores.

"You can't just go in and say 'I want this apartment.' It doesn't work that way," said Verges. "You have to go in and tell them you're making a commitment with this owner."

For the Maxcy's, their decision to rent is simple.

"It's nice to know you have to only pay rent and anything else that happens is somebody else's responsibility," said Luke.

Because right now, they don't want the responsibility of owning anything in this volatile housing market.

[standlee5]

Renting is great, no leaking roofs to have to fix, no broken plumbing to deal with on a weekend, no electrical shorts or damage to repair, and it''s cheap. It''s like the perfect thing. I miss renting so much. Homeownership is a never ending pain in the azzz

[dabsgram]

You are so right. We have owned two homes during the course of our 35 year marriage. For the past few years, though, we have rented a very nice apartment, and I have no desire whatsoever to go back to the fix-what breaks and mow the lawn lifestyle. With the housing market the way it is, this may be the new way of the world for a long time.

[cmm103]

I hope the Landlords don''t take advantage of the market and make their places higher in rent than what it was before the latest news on the housing situation and the banks problems that they raise the rent just because the market in rental units is at a high demand right now.

[barbaraf4]

I have rented and I have owned. I prefer ownership. I have a dog and a cat, I can have my own vegetable garden and I don''t have to worry about noisy neighbors or apartment complex parking. Of course there are chores and upkeep, but my house is only three and a half years old and I have a 10 year warranty. We took early retirement and at this point in our lives, this feels like a secure place to be. 20 years from now? Who knows.

[Hybdiesel]

To me renting is for lazy people. Pay rent for thirty years and you have a stack of receipts. I have, had a few leaking pipes and put on a new roof and cut lot''s of grass. No payments for the last 22 years.I do not own a half million dollar home. Not worried about the housing market. This place keeps the rain off and we are warm in the winter. Best of all no one tells us what color to paint the house, or what kinds of plants to put out. We love freedom.

[incog-nito]

It''s amazing what 8 years can do to the American dream.

[cariboubarbi]

RENTING...IT''S THE NEW AMERICAN DREAM!

THANKS BUSHIES!

IF MCAIN GETS ELECTED IT WILL BE:

LIVING IN A BOX IN AN ALLEY....IT''S THE NEW AMERICAN DREAM!

[simplemind2]

Indeed, American - have no fear!
After spending 3 Billions (i.e. 3,000,000,000,00) US tax-payers'' hard-earned money per week authorized by GWB - the "Sole Decider" - in Iraq,
NOW you all can MOVE there and rent a place to your heart''s delight!
GWB - MAN of hindsight 20/20.
Coming November vote for McCain - a.k.a. The Old-Man and his WINK WINK partner.
So that GWB''s Third Term legacy can continue forever!

[stevenga777]

From what I read on this board it apears that now Americans are even too lazy to own their own homes. In 20 years all Americans will be working at Walmart for their Chinese slave masters. Americans are spoiled and lazy, living off the wealth saved by the depression and WWII generations. We need a large influx of motivated immigrants to get the US back on it''s feet. I''s rather have a Mexican who puts pride in his work build my houses than lazy a$$ American workers. It''s hard to find a good American worker...I''ll hire an immigrant over a native born American any day because the immigrant is motivated to build a better life while Americans just want to get by like with the least they can do like Homer Simpson, Al Bundy, Joe sixpack.

[vietvet06]

I own my home and the land that it rests on. I don''t live in a city...the nearest store is twenty miles. My neighbors are beautiful. Good luck to the rest of you....

[loudpipes3]

Rent? --- Hah!--- Go ahead morons!
Throw your money down the tubes. Do YOU think, that if something breaks, that the landlord will be there, - "Johnny on the spot" to fix it? ---Hah! More delusion!
--Youll be on a waiting list. ---When your heater goes down in the midst of winter, do you think the "fine landlord" will fix it so you can be warm?--- Yeah! - When he gets to it. ---Mean while: - freeze your *** off! ---Broken toilet? - Set a 5 gallon bucket on the porch & use it till he gets there!!!
----Best thing? - Buy yourself a 6000 dollar shack & fix it up. Get some balls & repair it. - DEAL with home owership!
Why do you people HAVE to live in such FANCY houses, rental, or otherwise anyway? ---MAKE DO! ---This is tough times! ---
---Why "Whine"? ---Todays people are NOT built of the stock that I came from!!!
---What I see, is "whiners and wanters" today!
You all sicken me, from your overpriced mortgages that you cant afford, to your kids that EACH, want a different kind of breakfast, and the ole lady runs & fetches, to please you! --- B. S.!
---Hot pockets?- Yuck!
----All this advice, from, ---Guess who?
-----------A Landlord!!!! - Hah!
---------------Morons!---------------------

[rudy654-2009]

Isn''t this how the neocons want it? You bet ya!

[longtree-2009]

If some of you are doing well out there, play your cards to your chest. Should this bad economy continue with increasing numbers of "have nots", those who are "haves" will have to protect what they have especially if they are out of a city proper.

[brianbwb-2009]

"We''ll call on a place and somebody will say

[brianbwb-2009]

"We''ll call on a place and somebody will say, ''Yeah, we''ll show it to you'' and then we''ll call back the next day to set it up and they say ''Oh sorry, we''ve already rented that," said Luke.

Nothing new about that.

Next time Luke, have a "White" friend do the inquiry for you, present your qualifications without photos of yourself, then only appear after the contract has been signed.

This approach has worked for me more than once.

[brianbwb-2009]

It also works when buying a house.

[mulder121]

This is crazy.....every day our dreams seem to slip away for many....

Look what trusting the republicans for the last 8 years (yes that means Bush and Mini-bush) has got us. We the people have simply been raped!!! Not once, but twice!!! The joke is really on us.

They convinced us all the politics of taking from the poor and giving to wealthy is fair and good for the economy. (If your boss gets tax cuts than, you get wage rises and we can create more jobs....remember that promise) If the last eight years have proven anything, it just doesn`t work. Yeah sure you might like those policies that favour the wealthy only, if you are wealthy....but the rest of us are fed up. Remember the Clinton years.... America was doing great...compare that to today.... Ask yourself has your bills increased? How`s your 401 k plan doing? When was the last time you had a wage rise? How%u2019s your home doing? Can you send your kids/you afford college today? Know anybody that`s been laid off recently?? (Why? because their job got shipped abroad)....

I don`t want to be lied to for another four years. there`s certainly no bluebirds singing in my garden(Sky_Five)....just the mail man delivering more bills...

[brianbwb-2009]

A rational homeowner, who lives in the house owned with the intent of keeping it for future generations, should benefit if the value of the home falls, because property taxes also fall. If the home suits the family needs, there should be no plans to move elsewhere, the property should become a family asset, to be passed down. Even inheritance taxes are based on the value, so again it is in the interest of a home-keeper that values fall.

It is also in the interest of the middle and lower income segments that housing prices fall, as it puts ownership closer to being affordable.

If the homeowner is only a property gambler, only flipping for profit, when prices fall they get what they deserve, they bet, they lost, too bad. If they are irresponsible enough to try to squeeze cash out of equity, as has been called "using the house as an ATM machine", then they bet their asset. Again, you bet, you win, you smile, you bet, you lose, pay up.

In essence, falling house prices are good for the vast majority of Americans.

It is amazing how the media is still unable to grasp any other concept than "trickle down", even after all the evidence of the complete failure of such policies.

[oneworldusa]

Renting is becoming more popular because people with no downpayment can no longer get mortgages. Renters certainly pay for maintenance and repairs at a premium, just monthly upfront. Flippers are renting out because there are few buyers.

[smurfcrusher]

Yeah! Renting is hot! It''s NOT because you were thrown out of your home by greedy banks. You WANT to be renting, and giving all that equity to the owner of the apartment! Yeah! It''s by choice !

[smurfcrusher]

"A rational homeowner, who lives in the house owned with the intent of keeping it for future generations, should benefit if the value of the home falls, because property taxes also fall. " "...Even inheritance taxes are based on the value, so again it is in the interest of a home-keeper that values fall.

In essence, falling house prices are good for the vast majority of Americans.

It is amazing how the media is still unable to grasp any other concept than "trickle down", even after all the evidence of the complete failure of such policies."

Posted by brianbwb

Outstanding post, Brian. This is one of those truths that are undeniable and obvious to some, but spoken by few.

The same is true for "trickle down" economics which you mention. It''s no secret nor a surprise that the richest Americans often want to grab as much additional wealth by any means necessary.
Their consumption "trickles down" to the rest of us. It''s an apt analogy. In reality they are pissing on us.

No, the greater growth BY FAR is when the middle class is given a break, instead.

Why? Because the economy is 2/3rds consumer based. The middle class is just WAITING to afford to make additional purchases, but they lack the funds.

The rich help NO ONE by stuffing more wealth into their safes.

[smurfcrusher]

To close the loop.

Since 2/3rds of the economy is spurred by consumers buying products and services, there are two main benefits to giving the middle class a break.

First and foremost, you improve the lives of millions of Americans and strengthen America.

Second, you help businesses grow, since as already mentioned, middle class consumers are far more effective at spurring demand for more goods and services, than the wealthy.

Like anything, there are exceptions. Makers of ltra-high-end clothes like single-use $10,000 dresses will feel a pinch.

Luxury yacht manufacturers might need to focus on customers from other countries as demand here falls.

But on a macro view, the entire country will benefit from a stronger middle class. There''s no teacher like experience, so pay close attention these next eight years.

[brianbwb-2009]

Posted by smurfcrusher

The well known, solution, a short essay by Brian

American cities were built along agrarian practices, roads often drawn along old horse paths, and walking trails. The telecommunications infrastructure later grew along these same routes, for what was at one time expedience.

Our largest waterways and bodies of water are used as roads and sewers, rather than sources of fresh water for consumption, and for agrarian purposes

Vast stretches of urban areas are paved, unable to support life sustaining plants.

Because of this America is obsolete, and sorely needs rebuilding, from the ground up. Re-plan cities to take advantage of current knowledge of energy efficiency, telecommunications and transportation volume, and psychological effects of the immediate environment.

This is such a large undertaking that it will provide employment for all who wish to work, on a permanent basis.

The government has been printing currency without vesting any real tangible backing for it, creating devalued currency. To reverse this, the money needed to pursue the rebuilding can be printed, but distributed only after the commensurate amount of labor has been done. By cutting out middlemen, the Government can direct deposit into the account of the laborer, eliminating the largest opening for fraud, and vesting the currency with real value.

Contractors with history of illegal practices are automatically excluded from tendering.

[brianbwb-2009]

Part two, a real solution

The need to keep America at the forefront of technological progress is obvious, military hegemony is a failure in these modern times, we can no longer control other countries resources against their own interests.

Primary education curriculae should also be re-planned, eliminating useless propaganda, replacing it with real applicable knowledge, business, accounting, finance, engineering, science, and the arts should be prioritized as these are subjects usable in the modern world. Throw "Columbus discovered America" out the window, it wasn''t true anyway.

With an ongoing upgrading and modernization policy in place, and an education that actually prepares people for it, there is no reason that any able bodied person who wants to work, should not be able to find employment that pays better than the "McJob" working poor" wages that are the main of only a few legal options available.

[brianbwb-2009]

"The government (Democratic Party) will own everything and dole out what they thing we need to keep us working and on the edge of wealth and poverty. All equal under the watchful eye of our beloved Fuhrer and legislature."
Posted by maxify55

Even that is infinitely preferable to what we have now, the rich will own everything and dole out less than what they think we need to keep us working and on the edge of poverty.

No one equal under the racist, sexist, elitist, and religiously intolerant eye of the right wing neocon aristocracy and it''s paid-for politicians.

[newsjunky5]

The unstable housing market makes it a good deal right now to buy, not rent, because prices are low. Renting is not a dream, it is the less favored choice, taken by necessity. You could just as well say the American Dream is to have your savings dwindle and food prices to rise, because that is the trend.

[jswilliams451]

In the aftermath of the BUSH-McCain recession / depression, even renting will be something that is out of reach of many Americans. Much less owning.

Great job GW.

[brianbwb-2009]

Posted by newsjunky5

Even right now is not a good time to buy, as housing is still grossly overpriced to suit the US market.

With an average US job duration of 5 years, and an average of four to six months to find a job at a comparable wage, 30-year mortgages are insanity.

When the median housing price falls to the level of around $50K, only then will it be safe to buy, the falling earnings of the average US worker will drag prices with it. Until then only speculators trying to play the "bubbles" would consider it safe to buy.

[abmitus]

stevenga777

I agree 100%

[upto1947]

If Obama Osama wins, you will live in the street. Unless you are 8888, and then you might be able to rent.

[upto1947]

Making the rich pay tax well help. most don''t pay anything.

[hypnotoad72]

If Obama Osama wins, you will live in the street. Unless you are 8888, and then you might be able to rent.

Posted by Upto1947
----

8888? What does that number mean? I''ve heard of 42, 69, 666, 700, and even 18181 thanks to an ill-programmed database, but not 8888...

[hypnotoad72]

They have no business in our lives besides to make sure our borders are secure and maintain infrastructure like roads.

Posted by stick1771
----

I read your whole post and enjoyed it.

Though with the offshoring of jobs, can you clarify your statement on how people should pay their own way? I think most people do want to pay their own way and contribute, but that might be my naivety talking too.

But I will agree, what was set up as a safety net for working, loyal people like us HAS been abused by, forgive me, degenerates. Then add proper citizens into needing the same programs and now we have a crisis.

We can thank Oprah Winfrey, Steve Jobs, and Boner or whatever his name is; Steve lashes out at teachers, Oprah and Boner hawk ipods, and Oprah got annoyed because all the children in the inner city school said they wanted ipods. (Well, gee, she''s a role model and she sells them. OF COURSE kids, most of them, will want one too! Instead of throwing her tantrum, did she say what it takes to get one?? I doubt it; she immediately went to other countries. Not a bad thing to do, but I think she was more into making a token statement than "keeping it real".)

[skeezix06]

I see we''re starting a new/old line dance. One we''ve seen before many times.

First we''re told that buying your own home is the only reasonable way to live. Then we''re told that renting your home is the only reasonable way to live.

[wntrpls]

WAKE UP!!!! HOW DID AN UNKNOWN LIKE OBAMA raise 150 million in one month , yet telling us people are having a hard time paying their mortgages. CAN YOU SAY MIDDLE EAST DONATIONS.

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=78309

[slim1h2o]

I''''s rather have a Mexican who puts pride in his work build my houses than lazy a$$ American workers

posted by stevenga777;


----------------------------------------




The above statement is an oxy-moron if I ever heard of one.

[wl7bzh]

Ok, maybe it''s just me and I''m being cantankerous again, but this rent thingie has the look, feel, and smell of the next get rich scheme.

Little advice? Whatever the scheme is, get involved at the beginning and try to get out at the peak before it crashes.

[ttkkdd]

With wealth redistribution during past 8 years, renting, instead of owning is becoming the American dream. Under Bush, wealth has been redistributed from our pockets to Exxon and Haliburton.

[upto1947]

8888
RICH

[ttkkdd]

McShame is up to his old deceiving tricks again. First, he lied to us by saying on Sept. 15, 2008, "The fundamentals of our economy are strong."
Now, he says that Obama will redistribute the wealth. You can''t fool me McShame. You want to give more of my money to Exxon and Haliburton. I call THAT wealth redistribution. And an unfair one at that!

[slim1h2o]

Hacker11001 at 08:15 AM : Oct 19, 2008

Legalize, and regulate. Like all Big Pharma drugs.

How hard is that to understand?


Hey Hacker, you''d do well to stick to the story, as in renting?

But I forget, you have reading comprehension problems, don''t you?

[slim1h2o]

No "oxy" to it... Well, maybe "occ-i-moron".


--------------------------------------------------------------------------------

Posted by Nancy_Naive at 08:29 AM : Oct 19, 2008


I think you mean this;

Occ-i-put Medical- Physiology ?

[slim1h2o]

The real American Dream will be not to live in anything but a cardboard box.

[tiredofitnow]

And again, the poor will lose. Just what we need, more competition on places to rent. Now rents are gonna go through the roof because they can afford to pay more and the only place left for us will be housing projects. I''d rather be homeless! The same thing happened in the 80''s with the huge influx of snowbirds in Florida. I hope they all get good landlords, cause some don''t care whether or not things need to be fixed. If it''s within the law of them not fixing it, they won''t. Been there, done that and unfortunately, still happening.

[hotwitch]

We rented once, we had to worry about the pex pipes leaking all the time. Ever call the maintainence man and try to get him on a weekend? We had to worry about the bug spraying every other month. We had to worry about the neighbors with their loud music.

Saying renting is hot is like trying to make a virtue of a necessity. If you''re in a position to buy real estate now you''re stupider than stupid if you don''t take advantage of it. Rents are only on the way up. Renting a "nice" apartment is expensive. I''d rather own an entry level home than rent.

[slim1h2o]

Occimoron -- stupid white man!


--------------------------------------------------------------------------------

Posted by Nancy_Naive at 09:05 AM : Oct 19, 2008

Stupid girl, Your Bailiwick is not in words,

You mean occimiano,,,Look it up....

[rob416]

People may be renting out of neccesity and of course there are those that prefer renting over buying. Making renting look like the new American dream does not take many of the negatives into account. If an apartment building is not built with steel and concrete, noise can be an issue depending on the neighbors one has.

Sure the maintenace is usually the responsibility of the landlord, but how fast and how well it gets done depends on the landlord and maintenace staff. There is less control on what gets done by who, how and when.

For many renting is preferable and their is nothing wrong with it. Its an indivdual choice depending on ones situation.

[hsinco-2009]

I''ve also heard of renters getting evicted when the OWNERS get foreclosed upon.

One can get screwed either way!

[barbaraf4]

Posted by loudpipes3:

If you want to be taken as a serious contributor, then you need to enroll in a remedial English Composition course.

[verderosso]

The issue should be affordable housing for all and regarding housing, healthcare, transportation, education as top priorities for a nation which claims to be a government of the people, for the people, by the people. These are necessities that should NOT be treated as "commodities" on the market. "The socialist are coming!" you may shout but you should be so lucky to have a government which lives up to its claims.