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True, but paying a premium for the convenience of flexibility is a very recent phenomenon. That dynamic is, I think, still evolving. It’s only been a few decades now where you could rent by choice in a high quality safe building without social stigma of not owning.
Would you say that 10 and 20 years ago buying, relative to renting, was more or less affordable than it is today? Buy to rent ratios were lower then but interest rates were higher. I wonder If society’s expectations changed or it was just the economics of the mortgage payment.
I think it’s a combination of societal changes and other affordability issues. It’s not just the economics of the mortgage payment - look at how rates have fallen over the last 4 decades while homeownership rose, then fell, and now is rising again.pic.twitter.com/iEYh72s3tY
Good point. Regulatory standards and changing demographics are also big.
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