The Private Sector in the Rental Housing Market

Abstract

Numerous types of literature contend that housing plays a role in both the low-income population's need for public assistance and the comparatively affluent families' need for mortgage financing. Due to the failure of vacant homes, which ultimately resulted in wasted resources since medium-low income groups have curtailed purchasing power, the rental housing market is progressively where social progress is consolidated. Based on the role of rental housing, this paper goes into considerable detail about the private sector in this market. In tandem with the findings of previous studies, the research indicates that private power enhances social development in terms of active trading, achieving wealth, and alleviating the government's financial burden. However, the research discovers that some issues exist widely behind this aspect of the rental market, which not only causes significant life costs for some youngsters but also that the efficiency is constrained by governmental policies, as evidenced by data from some selected economies. Thus, the analysis is followed by some recommendations derived from the paper to use some financial investments such as leveraging and the REITs tool, as well as perspectives on adjusting governmental policies as strategies to strengthen the private rental market.