MINNEAPOLIS (AP) - Sean Kirschner tried for a year to sell his three-bedroom home in Montrose but got only five showings even with a price reduction.
After marrying and moving in with his new wife, he's trying Plan B - renting the house until the real estate market turns around.
A growing number of homeowners are doing the same thing, say those who work in real estate and with rental properties.
With more houses on the market than buyers, frustrated sellers figure they can cover their mortgage payments while they wait for prices and demand to recover.
Brent Wittenberg, vice president of GVA Marquette Advisors, which tracks rent and vacancy rates in the Twin Cities area, said he knows more single-family homes are for rent because apartment managers are reporting more competition. He doesn't have a number of homes for rent or know how big the increase is, he said.
Tina Gassman, spokeswoman for the Minnesota Multi-Housing Association, said it has been getting more calls from "accidental landlords" looking for guidance, and its classes for homeowners-turned-landlords have sold out.
Still, rent is up and apartment vacancy rates are down because more people are renting rather than buying. The average vacancy rate in the first quarter was 3.9 percent, compared with 4.4 percent last year, according to GVA.
Some renters lost homes to foreclosures, while others can't get a mortgage under new, stricter guidelines. And some people just don't want to buy when home prices are still falling.
Steve Cunningham owns a house in Ramsey that he's trying to sell. He has been renting a split-level in Maple Grove with his wife and children for $1,895 a month since deciding he wanted to live closer to work. He said he doesn't see buying again soon.
"I like the freedom of not being locked into living in one place and having the long-term financial commitment," he said. "Renting gives you lots of options for the lifestyle you want to live."
Posted in State-and-regional on Saturday, July 19, 2008 7:00 pm Updated: 2:18 pm.
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