Renting “Preferred” Theory a Fallacy via Multifamily Executive Magazine

“America’s housing market is becoming more European.”

The above sentence, or some derivation of it, has been uttered numerous times over the past few years. Those who make this assertion typically mean that America is moving from a housing market dominated by homeownership to one where renting is not only less stigmatized but often preferred. To support this theory, they cite the declining homeownership rates and the near-record–high apartment occupancy rates.

As the shocks from the housing-led recession continue to reverberate, it seems logical this contention must be true. However, the statement is false, not only because there is no single European housing market (the homeownership rate in Europe varies by country significantly), but also because there’s no serious retreat from homeownership in favor of renting in the United States.

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