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More people in the US are living on rent than owning a house
In a rising trend more people are renting accommodation than buying a home - something that was not prevalent some years back in the US. The number of people living on rent have been increasing in the US, whereas home ownership has seen a gradual decline.

THERE IS a new trend in the US that's gaining ground as more Americans are choosing to live on rent than invest in a self-owned house. As a result, the rate of home ownership is on a gradual decline, which the American citizens have taken in their stride.

It has been said that around 65.9% of the people in the US own a home now, which is said to be the lowest since the year 1998 in the US. As of now there are more than 100 million Americans who are renters. It may not necessarily mean that they have opted for rent, but it may have become a necessity due to their financial condition, due to which they can longer afford one's own home. Also, due to stricter banking regulations, home loans have become difficult to come by.

As a result, many Americans are on the lookout for rental homes for them to reside in. The fact that there's no shortage of properties on rent is fuelling this trend even as the US economy finds it difficult to break through from its phase of financial and economic consolidation. This phase is slowly changing the way Americans live, who were said to live life king size, and now it seems that they have come to a compromise as far their lifestyle is concerned.

Dean Baker, the co-director of the Center for Economic and Policy Research says that renting is a respectable option now. Experts are also of the view that housing could be an expensive option and a risky investment. It is very surprising as people in the US are going in for rent even when the houses come at a cheap rate.

The US government, though, will be concerned with this development - given the fact that the housing sector has always been the mainstay of the US economy, which is still the largest in the world. The more people buy houses, the more this pushes the overall economy - a top concern for the US government. But with borrowing rates already near zero, there's little that it can do to encourage spending in the housing sector. At the same time, this macro trend is based on a micro trend - that of the American consumer finally coming to his senses, realizing that over-spending is not a healthy habit. Perhaps, in the long run, this will benefit the US economy as well as the global economy.

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