Categorized | Commercial, Investing

Rents Continue to Increase in the United States

Please Share!

As housing prices continue to fall across the nation, the price of rent continues to rise. Apartment landlords have done very well in the last few years while the housing market has underwhelmed. The apartment vacancy rate is at its lowest in more than ten years across the nation, and looks to fall even lower.

 

With increased demand, and a dwindling supply, it only makes sense that rent prices continue to increase. The biggest increases are seen in the biggest cities, with San Francisco, Boston, Austin, and New York City all out in front. Even cities that have seen sharp declines in their housing market are experiencing strong gains in rent prices.

 

More and more people are looking to rent in the current market, as there is still a significant amount of uncertainty regarding whether or not the housing market will start to show signs of improvement in the near future. Other factors, such as job uncertainty are also playing a role. Job growth has started to improve in the recent months, though people are more likely to rent until they have been with their job for at least a year. As such, economists believe that the current renters market will see further growth for at least the next year.

 

Another factor that is contributing to the booming rental market is that many families that would consider buying a home are having a difficult time qualifying for a mortgage. Lenders continue to be very stringent with respect to who they approve in terms of mortgage loans, and until they loosen their policies, it is likely that the rental market will thrive.

Please Share!

About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

Leave a Reply

Twitter Chat