GMAT Practice Question Set #6 (Question 16-18)

Critical Reasoning Question #17: Renting or Buying Real Estate  
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In a fast changing market and while still single, young working professionals often change jobs and switch job locations. Such uncertainty discourages these young professionals from buying a home. When settled with a spouse and a stable job, however, these young professionals generally choose to buy real estate. Surprisingly, in cities where the industry and market are quite stable, young working professionals are still not buying, even though they are not changing jobs and may already be settled down in a spousal relationship.
Which of the following, if true, most helps to explain the surprising finding?

Stable markets do not themselves entice working professionals to buy real estate rather than to rent it.


Brokers readily connect for-sale-homes with working professionals who have stable jobs and are in spousal relationships.


The stability of industries varies widely from city to city.


A very expensive home can significantly decrease the ability of a working professional to fulfill his mortgage payments.


Due to lending constraints, banks have increased the down payments required for consumers to obtain mortgages for new homes.

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