Renting more affordable than owning for Americans

With the housing market continuing to struggle, more Americans are turning towards renting houses and apartments as a more economically viable option than buying.

Consumer confidence is on the rise among Americans, but with the rising number of foreclosures and property prices being under pressure, the 8.6 percent unemployment rate is still taking a toll on the country, according to Reuters.

The percentage of Americans who own their home dropped from 69.2 percent in late 2004 to a 13-year low in the second quarter of 2011, when it hit 65.9 percent. Reuters reported. Despite the 0.4 percent increase in the third quarter of the year, the number of Americans who own their home remains low.

“Rents are rising, vacancies are falling, household formations are growing and rental supply is limited,” a recently released Morgan Stanley report stated. “We believe the demand for rental properties will continue to grow.”

According to a senior economist with ITG Investment Research, the reason rent is rising is because there has been a lack of construction of rental properties because despite many people looking to rent, many renters have been able to garner cheap financing to buy a house.

Americans who are renting but would like to own might be packing up soon to take advantage of the foreclosure market and favorable rates on mortgages while house prices remain low.