Some experts are saying that sharing economy technologies will likely become a powerful force in the housing industry, changing homebuying demand and the need for new home construction.
Affordability concerns may well drive homeowners to take in renters, and cause renters to seek out co-living situations. Demographic shifts are also being cited as a major contributor. Retirees and empty-nesters may desire companionship and additional income, and single parent households may seek affordable, safe homes in a good school district, says John Burns Real Estate Consulting.
Just like millions of Airbnb users prefer to pay less for accommodations, millions of renters prefer to pay less in rent. Across major metros, effective rents are almost 23 percent of median income, the highest level in 10+ years. With rents so high, more renters are looking to home sharing as a cheaper alternative to traditional renting.