According to the Bipartisan Policy Center, there will be five to six million new renter households created within the next 10 years. Rental demand will increase due to tight credit conditions and low inventories of rental homes available. Demand for home rentals will specifically increase among seniors who are looking to downsize their homes. Young adults and the growing immigrant population will also positively affect the demand for rentals.

According to Housing Wire, Barry Zigas, the director of Housing Policy for Consumer Federation of America said, “We expect to see an increase in household formation and for a variety of reasons that household formation is likely to be more heavily concentrated among renters and households who are likely to be renters for somewhat longer than was the case for the last 20 years.”

Home ownership rates continue to be held back mainly by tight credit conditions that potential buyers are dealing with.

Zigas predicts that “Credit for home ownership borrowing will likely be tighter and potentially more expensive, relative to earlier times.” Zigas added,  “Families will likely have less wealth because the rising generation is starting with less wealth. If down payments are at any significant level, it will be a barrier to acquiring a home for longer than may have been the case in the past.”