Less Renters Are Opting to Become Homeowners

house-435618_1280Although rental rates continue to rise rapidly, fewer renters are opting to become homeowners.

Renters across the country are paying more for their apartments, putting a stranglehold on their financial flexibility and their ability to save for a down payment on their own property. Fewer renters today say they believe they’ll be able to buy a home in the next year, according to a new report from Zillow, and that could put a crimp in the U.S. housing market’s recovery.

The current decade is on track to be the strongest period ever for renter growth, thanks to the legions of millennials who entering the workforce, according to researchers at Harvard’s Joint Center for Housing Studies. That’s good news for landlords, but rent checks are eating up a bigger share of workers’ paychecks, given that rents in 2014 rose at double the rate of inflation.

Find out more at CBS Money Watch.

Photo courtesy of: tkoch