7. They’re Renters
In the middle class, there is a good mix of people who both rent and own property. However, if you hear that someone is renting an apartment, you automatically know that they must be in the middle or lower-middle class. The Pew Research Center published a document called “American Families Face a Growing Rent Burdon.” According to their research, the demand for rental space has grown significantly since the 2008 recession. As of 2016, 43 million Americans were renting an apartment or house. Unfortunately, rental prices seem to be going up, which means that rents are having an increasingly difficult time keeping up with the cost.
People who live below the poverty line may have to resort to living with multiple roommates. And many young people are forced to live at home with their parents far longer than they expected. Most people who are wealthy have the mindset that paying rent is like throwing money away. They would rather spend money on owning a property that could be sold later. While many middle-class people are aspiring to homeownership, they continue renting in the meantime. While renting can be suitable for a short period, especially while looking for a home to buy, over the long term, it prevents you from building equity.