Rental Rates Surging Across Country For First Quarter 2008
While housing prices remain moribund, the demand for rental properties has rates surging across the country. Simple economics will tell you the longer that people hold off buying the more renters are created. The newly married and young buyers that normally would enter the housing buying cycle are still renting as fear, uncertainty, and doubt are dominating the marketplace.
But then a funny thing will happen. Rents will be too high to not justify buying even if there is some downside to the purchase. These same folks that have held off will create so much pressure on the rental market that when they decide to buy, they will all at once not to miss out.
That is why real estate is such a funny business. Mass consumer sentiment plays a much greater role than almost any other marketplace.
Here is a list of major metropolitan markets and the median rent being charged for the first quarter of 2008 from Realtor Magazine.
Atlanta: $986
Austin: $907
Boston: $1,645
Chicago: $1,355
Las Vegas: $1,056
Los Angeles: $1,699
Miami: $1,368
New York: $1,751
Phoenix: $939
San Francisco: $1,810
Seattle: $1,211
Washington D.C.: $1,687
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Pingback by Transitioning from Renting to Owning | Redfin Seattle Sweet Digs on 24 April 2008:
[...] need a place to live. The increased demand on rental housing creates an increase in rental rates. For Seattle, the median monthly rent is $1211. As rents increase so does the motivation to buy and so will flip the demand once [...]
Comment by Uncle Jack @ VeryVintageVegas.com on 28 April 2008:
rents are UP 25% in the last year here in LV. It’s starting. Prices are down the same.
Soon we’ll be advertizing the unthinkable…
“why rent when you can buy for less”.
Comment by joe on 6 July 2008:
Rents spike at the peak of all markets. Then they decline exponentially as home prices plunge. Look at any historical data. All this means is that rents will start to fall as housing crashes creating a deflationary spiral in an inflationary environment, which creates even more price pressure as salaries explode to fight inflation. If you own anything housing related in the current environment, you and your families financial futures are in severe doubt.