“More affluent Americans are opting to rent as opposed to buy,” says Jack
McCabe, an independent real estate analyst and CEO of McCabe Research and
Consulting in Deerfield Beach, Florida. And they are paying top dollar to do it.
This new demand is being seen across the country, including the La Jolla real
estate market. Not only are consumers renting properties for the easy
convenience it offers, but also to get a feel for their future home before
making the substantial investment. La Jolla real estate and vacation rentals
has always attracted the high-end seasonal renters but now we are seeing a shift
to long-term luxury rentals for those interested in acquiring La Jolla real
estate. A lot of new business owners are choosing to invest in their growing
businesses versus purchasing real estate. La Jolla entrepreneurs can rest easier
knowing that if they have to relocate for a job, they can leave their La Jolla
rental without having to worry about putting their home up for sale. Just last
year, high end homeowners wanted to put the properties they could not sell up
for rent. However, no one was interested in renting them. One year later, the
phones in La Jolla rental offices are ringing constantly as this demand has
> Nowadays, La Jolla real estate investors are opting for the “wait and see
approach,” no longer in a hurry to own property. In 2011, the idea that buying
is for the rich and renting is for the less affluent no longer holds meaning.
Considering luxury rental properties have equally beautiful modern amenities as
their “For Sale” counterparts, making the switch has been easy on homeowners.
“When I tell people I rent homes for $25,000, people ask ‘why would anyone rent
at that price,’ says Dane Soderberg of P.S. Platinum. “They are accustomed to a
certain lifestyle. Just because they choose to rent does not mean they are going
to rent a two bedroom.”
Article provided by Joseph Pisani CNBC News Associate.