Respected businessman Frankie Bordeaux knows real estate—and he knows that home buying is down and renting is going up. Recently, we sat down with Frankie Bordeaux to find out why this is happening and if it may change in the future. Read on to see some of Frankie Bordeaux’s surprising answers about this modern day real estate phenomenon.
Q: Why do you, Frankie Bordeaux, think people are more likely to rent nowadays?
Frankie Bordeaux: Because this economy is sluggish, people are more hesitant to commit to 15, 20, and 25 years to pay off a house mortgage. Renting is an affordable option for families and there’s a certain freedom that comes with renting.
Q: Do you think people are worried about being laid off?
Frankie Bordeaux: Yes. I think many would-be homebuyers are worried about losing their jobs, not being able to find work, and then foreclosure as they are stuck in a home they can’t afford.
Q: Do you think this is a generational change?
Frankie Bordeaux: In some ways I do. Younger generations may be less likely than their parents to commit to one job, one company, and one home for decades of their lives. They tend to be more transient in their careers; therefore, younger generations are more apt to rent instead of purchasing homes.
Q: Are people’s views on homes changing?
Frankie Bordeaux: Absolutely. Homes used to be seen as a sign that you’ve made it, but now many people see them more as a ball and chain or a major liability for years to come.
Q: What’s the appeal in renting?
Frankie Bordeaux: It’s a lifestyle thing. Many renters don’t have to worry about yard work or home improvement projects or other maintenance issues. Renting is less expensive than buying a home and renting gives them more flexibility in managing their lives.
Q: What are apartments doing to attract renters?
Frankie Bordeaux: Many apartment complexes are selling themselves as resorts with luxurious swimming pools, fitness facilities, party and lounge areas, along with other amenities. It’s minimal upkeep and maximum leisure for the residents.
Q: Are rent prices increasing because of the increase in renters?
Frankie Bordeaux: Yes. While home prices have rebounded somewhat, the trend of increased rent prices is still on the rise. Still, when you factor in the costs of home ownership, along with the freedom of being able to move when a lease is up, many people still find it a lot of value in renting.
Q: Are people furnishing their homes with less?
Frankie Bordeaux: That’s definitely another trend. Renters are more likely to move multiple times within a decade now, so they may forgo buying the furniture that homeowners would normally seek out. Furniture rentals have increased as well.
Q: Do you think people will begin buying homes again in the future?
Frankie Bordeaux: The numbers are already rising, but I don’t know if they will ever reach pre-recession levels. And many new homes that are being built are returning to more practical, budget-conscious, and efficient floor plans.
Frankie Bordeaux is from Greenville, North Carolina. He is a businessman, property manager, real estate developer and NCAA men’s basketball official. He also spends his days advocating for youth and childhood development and working in his community.