Rent the Driveway vs. Rent the Runway?

We have become a society where everything can be temporary.  I was reading an article in last Sunday's paper about a woman who rented her apartment, her furniture, and her clothes!  She was happy not to be making a commitment to her belongings long term, but it seems to fly in the face of another trend--the Danish hygge (nesting, cozy).

When people want to nest, to feel comfortable and at home, do they want to rent?  Even the also-trendy "tidying up" movement, where you only keep what gives you joy, seems to imply that what gives you joy you want to own.

Although millennials are said to be firm renters in central cities, even they appear to head for homes, often in the suburbs, when they marry and have children.  There seems to have arisen a happy medium:  Now there is no stigma about renting.  People may choose to rent in order to try out a new area, vacation or temporarily relocate, split their time between two locations, or save money while they look for the perfect home. Those same people who get dress clothes from Rent the Runway can decide to rent a driveway, and sometimes not even spend more.

There is also no stigma in owning, and others may choose that route.  In the way that most of us have favorite lounging clothes, old and treasured jeans, and maybe even some childhood stuffed animals, many will choose to luxuriate in a space all their own.  They may want to feel settled, even as others want no ties.  They may want the enforced savings that paying a mortgage can provide.

Although we both sell and rent property, we tend to come down on the side of owning, at least in some periods of life.  Building or buying a homestead, where a family can gather and make memories, is still the American dream.  But the great thing is, you can choose for yourself.  And there's something for everyone.

Southwestern CT housing prices strain owners and renters (from CT Mirror)

The following article is from the CT Mirror and was written by Schae Beaudoin, please click here to visit CT Mirror online

Almost half of Americans pay too much for their rent, and in southwestern Connecticut those numbers are even higher, says a national study.

Harvard University’s annual State of the Nation’s Housing report says 18 million renters across the nation are burdened by their housing prices. Homeowners and renters are considered “burdened” if they spend more than 30 percent of their income on rent.

In Fairfield and New Haven counties, about 55 percent of renters are considered burdened. Both counties are in the top ten in the nation for percentage of burdened renters. The national average is about 48 percent.

Additionally, over 11 million renters in the U.S. were considered “severely burdened” in 2015 because they paid at least half of their income for housing. The number of homeowners considered severely burdened was at its lowest since 2004, but there still were more than 7.5 million Americans in that category.

In their proportion of burdened homeowners, Fairfield County is behind only the New York City and Los Angeles metro areas. The Hartford metro area, which includes Hartford, Middlesex and Tolland counties; the New Haven metro area; and the Worcester, Mass., metro area, which includes Windham county, also are above the national average for burdened homeowners, which is 24 percent. About one out of every three homeowners in Fairfield and New Haven counties are burdened, according to the report.

Burdened renters and homeowners

Percentage of burdened renters and homeowners in CT, surrounding metro areas and the national average

Area	Percent of burdened renters	Percent of burdened homeowners
Fairfield County metro	55%	35%
New Haven metro	55%	31%
Hartford metro	47%	27%
Worcester metro	46%	27%
New York metro	53%	36%
Boston metro	49%	28%
National average	48%	24%

HARVARD JOINT CENTER FOR HOUSING STUDIES, STATE OF THE NATION’S HOUSING 2017

Rents in Fairfield County are among the highest in the nation, with median rents higher than those in the New York and Boston metro areas.

Pete Gioia, economist at the Connecticut Business and Industry Association, said Fairfield County’s high prices aren’t new, and Connecticut is relatively affordable compared to the larger surrounding cities. In Boston and New York City, housing prices are growing faster than they are in Connecticut. Affordability problems arise when houses in buyers’ desired price range aren’t available.

“Is the housing stock that’s available comparable to what purchasers are looking for? That’s where you get into some affordability issues,” Gioia said. “This is not just true of Connecticut. This is true of other areas. There’s a lot of buyers out there for reasonably priced housing. There’s fewer buyers out there for very high-end, expensive and large properties.”

While median income for renters in New York, Boston and Fairfield County are similar, the median rent in Fairfield County is about $100 higher per month than in Boston and New York, suggesting higher rents, not lower incomes, are behind the burdens on renters in Connecticut.

Fairfield and New Haven counties have some of the lowest percentages of 18- to 24-year-olds heading households. About 10 percent of 18- 24-year-olds are independent heads of households in those counties. The national average is closer to 20 percent.

Gioia said affordability probably keeps some younger millennials from moving out on their own in Connecticut, and many who do leave for other places. Gioia said students who leave the state for college are more likely to stay out of state. Larger metro areas also appeal more to younger people, he said.

“If you’re an unmarried 23-year-old, you want to be where the action is, and there’s a heck of a lot more action in New York City or downtown Boston than there is in Connecticut,” Gioia said, adding many young people come back to Connecticut later in life when they begin families.

However, Gioia said there is economic opportunity here. “If you’ve got the skills, you can make a pretty darn good income in Connecticut, even if you’re fairly young,” Gioia said.

The report found that nationally, higher rents may become a norm. The number of rental units costing less than $800 per month has decreased between 2005 and 2015. In the same decade, units with monthly rents over $2,000 increased by 1.5 million.

Rentals

It stands to reason that there will be many more people looking to rent, if the wave of short sales and foreclosures continues. In fact, it seems hard to believe that in some suburban places there will ever be enough homes for rent. Still, there are houses out there that owners, for many reasons, choose to lease out.

If you have a home you wish to rent, what should you do? First of all, consider leaving some basic furnishings, if the renter needs them. Often corporate transferees rent for a while, before their families arrive. They usually make wonderful tenants, since they typically go home every weekend and work long hours when they are here. Secondly, be open to pets if possible. I never realized how many people have pets! It's certainly understandable that an owner wouldn't want animals, but it is possibly the biggest reason that tenants reject certain options. Finally, be as generous as possible with your appliances. It is a hardship to rent a home without laundry facilities, particularly in a town or region where there are few if any laundromats.

Most people who rent out homes over long periods of time have some story of the "renter from hell", just as most long-term tenants have encountered the "landlord from hell". However, there are many, many examples of positive experiences, and a little flexibility can go a long way.