A new study shows that 6.5 percent of homes built before 2000 and 10.3 percent of homes built in the 1990s went from owner-occupied to rental status, according to the Mortgage Bankers Association’s Research Institute for Housing America. A homeowner’s equity position is one of the central issues that prompts owners to take their property from owner-occupied to rental status, according to a new study.
Owner-occupied homes with a combined loan-to-value ratio between 100 percent and 120 percent are between 1 and 2 percentage points more likely to become rentals. Homes with a combined loan-to-value above 120 percent, on the other hand, are between 6 and 8 percentage points more likely to make this transition.
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