Homeowners Who Sell Then Rent
To determine the number of people who currently own their homes and are not looking to sell would, in fact, sell if given the opportunity to rent their own home for purposes of market sizing. In addition, reasons why homeowners would do this are also desired.
Preliminary research indicates that there is no direct answer to the number of people who currently own their homes, are not looking to sell, but might be willing to if they were able to rent their house back. However, using the estimated total addressable market for the EasyKnock Sell & Stay program, which allows homeowners to sell their homes and rent them back, an estimated number of people can be calculated.
GENERAL MARKET SIZE
- CEO of EasyKnock, Jarred Kessler, stated the addressable market for the company's "Sell & Stay" program is $2.6 trillion.
- In the second quarter of 2019, there were 122,453,000 homeowners in the United States.
- The residential real estate market size is currently worth $27 trillion. This means that the total addressable market size for the Sell & Stay product represents nearly 10% of the total real estate market ($2.6 trillion / $27 trillion = 0.096).
- As such, 10% of the total number of homeowners in the U.S. would be about 12,245,300 (122,453,000 x 0.10).
- Therefore, the approximate number of people who are not looking to sell their home, but may be open to doing so if they can rent it back is 12.25 million.
- Homeowners who have lower credit scores and cannot access traditional loans may decide to sell their homes and stay living it them just to access their equity.
- "Small business owners who have been shut out by the credit markets" or people who have missed a credit card or mortgage payment may not be eligible for loans and may need to access the equity in their homes.
- EasyKnock indicates that approximately 23% of homeowners are unable to access the equity in their homes.
- People who purchased their homes on a low-interest ARM may need to sell their homes once interest rates rise.
- Retirees who no longer have a steady income may need to access the equity in their home by selling it, but they may not want to move from the house they have known for years.
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