Mar 14, 2024
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Many Americans grew up thinking that having a house, car and white picket fence is an integral part of the classic American dream. But it appears that for many, that dream is changing.
According to rental giant Zumper’s latest annual report on the state of renting, 52% of U.S. renters said the new American dream is being untethered to home ownership and almost 40% never plan to to buy a home.
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“More than 30% of renters now think the American dream does not involve home ownership,” Zumper CEO Anthemos Georgiades said in the report. “That’s a statistic no one in the real estate industry can afford to ignore.”
People will probably tell you that renting is like burning your money — but in reality, being a renter can work to your financial benefit in this current market.
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Mortgage rates are hovering around 7% and the median home price reaching $379,100 according to the latest data from National Association of Realtors.
Here are three ways to flourish without buying a home.
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1. Find a passive income stream
Homeownership is far from the only path to happiness and financial security.
If you’re looking to make an investment in the real estate market but you’ve been priced out of the housing market or you don’t want to take on the extra work and hassles of being a landlord, there are alternative avenues to consider with Arrived and First National Realty Partners (FNRP).
Arrived is an online platform that allows you to invest in shares of vacation and residential rental properties, without taking on the burdens of property management.
Through Arrived, investors can enjoy flexible investment amounts and a simplified process, catering to both accredited and non-accredited investors, allowing them to tap into this inflation-hedging asset class.
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With FNRP, accredited investors can invest in shares of grocery-anchored commercial properties while enjoying a quarterly income distribution. Their team of experts manages every step of the investment lifecycle. Plus, you won’t have to worry about property management and you can relax knowing that these necessity based properties can weather the storm of economic volatility.
All you have to do to get started is fill in some information about yourself, your income and investment goals. Whether you’re renting by choice or circumstance, these real estate investments offer an alternative path to financial growth.
2. REITs and private equity
Many people assume that owning a home is a good investment, but that's not necessarily true. About 73% of renters do not think now is a good time to buy a home, according to the Zumper report.
One of the ways to avoid high home prices and homeowner hassles is to invest in REITs or private equity deals.
With RealtyMogul accredited investors can invest in real estate without the burden of being a landlord through REITs.
RealtyMogul’s innovative online platform allows investors to sort through professionally vetted commercial and residential real estate opportunities and review their performance history before investing. From signing legal documents to tracking your investments performance - everything can be done on your personal online dashboard.
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Read more: Generating 'passive income' through real estate is the biggest myth in investing — here’s how you can do it in as little as 5 minutes
Fundrise offers investors access to a diverse world of alternative investments, including real estate, private debt and venture capital. With over 2 million investors and $7 billion in real estate alone, Fundrise allows you to diversify your portfolio with the potential to generate dividends on a quarterly basis.
All you have to do to get started is answer a few questions about yourself, your finances, and investing style, and Fundrise will make suggestions tailored to your investing goals.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
3. Use the money you save to pay down debt
Beyond the sticker price and mortgage, owning a home involves a number of non recoupable costs like mortgage insurance, homeowners insurance, interest and property taxes. And when something breaks down, you’ve got to fix it yourself instead of simply calling the landlord.
When you save all of that money as a renter, you could take it and put it toward consolidating your debt. By dropping all your balances into a single lower-interest debt consolidation loan, you can make your debt easier to manage and even pay it off sooner.
Credible offers a solution for streamlining your debt repayment at an affordable rate. Their online marketplace provides personalized debt consolidation loan offers tailored to your specific needs, allowing you to pay off your debt more efficiently at a fixed rate.
After answering a few questions, Credible presents you with a list of loan rates from top lenders, allowing you to compare and choose the option that suits you best.
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