Rent Increases on the Horizon

Vacant apartments in the US have dropped to 5.2%, a 10 year low in the 4th quarter. This may be good news for the construction industry, but for people who rent it can only mean 1 thing, rent increases are on the horizon. The average monthly rent has already climbed 2.3% from the previous year to $1009.00.

Tight lending standards for the millions of potential home buyers whose credit has been dented because of the economy, Couple that with rising foreclosures and you can see why more people are choosing to rent. In fact rental housing has been the best performing segment of the market for the last 2 years. The vacancy rate has fallen for 7 straight quarters.  A total of 8,865 new units became available in the fourth quarter, the second fewest of any 3 month period since 1999.

You can leave a response, or trackback from your own site.

Leave a Reply

%d bloggers like this: