Moon Kil Woong
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Are We Becoming a Nation of Renters? Investing for the New Housing Dynamic [View article]
People have really stigmatized renters incorrectly. A renter who saves beats a homeowner who doesn't hands down. Furthermore, housing prices unhinged from a reasonable multiple to local rental costs are really susceptible to price correction 15x is rich. The only way rental prices rise is more demand.
Thus rental prices in many ways are the fundamental support to the housing market. Not fake low interest ARMs, 3.5% down FMA loans, or 30 mortgages at 5.5% peddled by Fannie Mae, Ginne Mae, and Freddie Mac at the future cost to taxpayers (when they go underwater and get bailed out by the government again from writing these absurdly low long term mortgages and buying the bonds from banks).
Thus the only ones who may be laughing all the way to the bank in the future is renters to the chagrin of the government and real estate brokers. Sure you don't get the giant housing price apreciation gamble, but if you want to gamble goping to Vegas seems a lot cheaper these days.