Rents Are Rising: What Should You Do?
Julie Mehta
Posted on August 10, 2012
The good news is the housing market is beginning to perk up. The bad news is some apartment rents are going through the roof.
Rents increased an average of 5.4% between June 2011 and June 2012, according to new findings by real estate website Trulia, and in cities such as San Francisco, Boston, Denver and Miami, rental prices have jumped more than 10% over the past year.
A Reuters article reports that recent data from real estate research firm Reis shows rents increasing at the highest rate since 2007. The average asking rent is now $1,091 per month nationwide. In the most expensive market, New York City, that average is $2,935.
Ouch.
Today, we’ll take a look at some of the factors driving rents upward, and suggestions for how to handle this trend:
Rents increased an average of 5.4% between June 2011 and June 2012, according to new findings by real estate website Trulia, and in cities such as San Francisco, Boston, Denver and Miami, rental prices have jumped more than 10% over the past year.
A Reuters article reports that recent data from real estate research firm Reis shows rents increasing at the highest rate since 2007. The average asking rent is now $1,091 per month nationwide. In the most expensive market, New York City, that average is $2,935.
Ouch.
Today, we’ll take a look at some of the factors driving rents upward, and suggestions for how to handle this trend:
Why Rents Are Rising
Right now, there’s plenty of demand for rentals, and not enough vacancies. Here are three big reasons why:
- The flood of foreclosures in recent years has forced a number of former homeowners into the rental market.
- An easing employment market has enabled people who may have been living with family or roommates to seek out places of their own.
- Renters who may be thinking of buying a home are biding their time because of the volatile state of the economy and the fact that lenders are pickier about who qualifies for a mortgage these days.
While there’s all this demand, the supply of apartments hasn’t kept up. According to Reis, only about 38,000 new apartment units were built in 2011, the smallest number in more than 30 years. And the current apartment vacancy rate is just 4.7%, the lowest it’s been since 2001.
To read the entire article from Learnvest.com:
http://www.learnvest.com/2012/08/rents-are-rising-what-should-you-do-2/
Daniel 1:8 — But Daniel resolved not to defile himself with the royal food and wine, and he asked the chief official for permission not to defile himself this way.
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