For decades the American dream has been to become a homeowner, something that has become increasingly difficult as the cost of housing in the Pasadena area has continued to skyrocket. In fact, the drive to accomplish this goal is so strong that many people will acquiesce to it, even if buying a home will take every spare dime they have. The problem with this is that for many families buying a home can leave them so financially strapped, they miss out on many of the finer things in life such as spending time with their families instead of working two or more jobs.
A New Economic Climate
Given the high cost of housing in the San Gabriel Valley has reached the point at which buying a home may not be the best choice for many. For many who live here, going massively into debt to buy a house is not always the smartest move. The reality for many is that income has truly not increased over the past ten years or more. Wages may have gone up, but at the same time so has the cost of living. Thus the amount of disposable income a person may have to spend on buying a home has gone down rather than up.
When you look at this, it becomes a little easier to see why renting a home in the Pasadena area might make a little more sense. But there is more to the story than this, there are several reasons why the rental market has grown exponentially over the past decade.
People, especially young professionals no longer seem to stay with an employer for their entire careers. Few employers in the area offer this type of stability, rendering the idea of being tied to a house and location far from appealing. Renting a home gives you the flexibility to move as your job changes or when you need to move to a new location in order to move up within your company.
The easy access mortgage bubble burst in the first decade of the 21st Century, making it harder for those with good credit to secure a mortgage, let alone those with less than perfect credit. Sure, interest rates are down on paper, but those rates typically apply only to those with stellar credit. In most cases, it is much easier for a person to find a rental home and pay the extra deposits required than to find a bank or mortgage company who is willing to work with them.
The selection of rental properties hitting the market in the San Gabriel Valley area continues to increase. Many of the homes coming up for rent are in the more select areas where homes facing short sales and possible foreclosure are being offered for rent as a way for the homeowner to protect their assets rather than losing them to the bank. This gives you a much better selection to choose from and the ability to find the perfect rental home in an area of the city you need or want to be in, rather than being stuck buying a house that leaves you with a ridiculous daily commute.