A Conversation With … Toby Yates

According to the Joint Center for Housing Studies at Harvard University, more than 43.3 million households are renting, putting the market at a 50-year high of about 36 percent. What does this mean for the housing market?
It might be a little [concerning] as far as the home sales. There are national statistics that are showing trends, especially in the bigger cities, that people are leaning toward renting. Will that shift back? I’m sure. It goes through a cycle.

Nixa is probably the No. 1 spot for rentals. Ozark, Republic and Willard are growing. Nixa and Willard draw a lot of people because of the school systems. We get a lot of people with high credit scores renting nice homes.

As someone whose company manages rental properties for clients, why do you think that more affluent demographic is renting instead of purchasing?
A lot of the younger generation saw their parents go through the downturn, and saw the effects of that. I know that the housing market is strong, but I don’t think as many people have the desire to have a home with a white picket fence. It’s not as much of a priority as it used to be. More people are mobile, too, especially with jobs. We find a lot of higher-end professionals coming into the Springfield area – a doctor or attorney – if they know they’ll be here two or three years, they don’t want to buy.

On the opposite end, we see a lot of the older generation – 50s, 60s, 70s – selling their homes or moving out of their homes, downsizing and keeping their house as an investment property to rent out. For those 55 and over, that is big. They are popping up all over the place, and they are in high demand.

What’s the average rate for rentals in the Springfield area?
The average rental price is around $995 for a three-bedroom, two-bath, two-car-garage home in south Springfield, Nixa, Republic and Willard.

There is a lot of focus currently on keeping local college graduates in Springfield. As more of these workers are retained, do you think this rental trend could change? Or do you think they’ll still decide to rent?
If they are able to keep them, I think yes, we’d see an increase in both renting and buying. I’ve seen an increase in the housing market and sales. Usually when rental homes are in demand, purchasing goes the other way. But it’s been staying with it.

Editor’s note: According to the U.S. Census Bureau, 64 percent of Americans own a home.