More reasons for renters to become homebuyers

A recent Harvard study gives you more reasons to target renters as potential homebuyers. The study reported that rents are rising at twice the rate of overall inflation and, more importantly, rising faster than paychecks, especially for the middle class.

The homeownership rate has fallen to a 25-year low as more folks choose to or are forced to rent. Apartment vacancies are disappearing, and that is keeping upward pressure on rents.

In 2013, nearly half of renter households were "cost burdened", meaning their rent ate up more than 30% of their income. Given that rents continue to rise and wages remain stagnant, it's likely the percentage has grown in the last two years.

Homeownership still seems to be a better financial choice in many US cities. Despite rising home prices, NAR's first quarter home affordability index shows that Texas homes remain very affordable for median-income folks. The obvious marketing angle is to encourage renters to buy now before rising home prices and interest rates degrade affordability.

A more creative marketing angle might be to focus on rent prices rather than home prices. Rents change, and right now they're rising more than 5% annually. The Labor Dept reports that incomes are rising at less than 2% annually, so rent is going to eat up an ever-larger share of a family's income. Buying a home now allows a family to control their housing cost more effectively with a fixed mortgage payment at a low interest rate.