In the face of a slowing housing market, rents are increasing quickly across the country. The part of the population that would normally be purchasing housing is holding off in the face of stagnant or declining housing prices is putting pressure on the rental market across the country.
Miami has a 1 percent vacancy rate which is amazingly low. I wonder if the flippers will see this and start putting the properties they can not sell on the rental market to take some of this demand.
The average rent was a record $952 a month, a 5 percent gain from a year earlier. That’s the fastest pace since rents grew 8.3 percent in the first quarter of 2001, said Richard Levy, a senior research analyst for the trade group. “Buyers are being squeezed out of the real estate market by rising mortgage rates and high prices,” Levy said. “That’s boosting demand and prices for rentals.”
Demand is making it easier for landlords to pass along higher energy costs, Levy said.
The top rental market in the country is Miami, where the vacancy rate is 1 percent, according to M/PF YieldStar, a Carrollton, Texas-based research company. Ft. Lauderdale is No. 2, at 1.7 percent. Cincinnati and Cleveland are at the bottom of the company’s ranking of 57 markets, with vacancy rates of 9.5 percent and 9.2 percent, respectively.
Rents increase at fastest pace in 5 years | Chicago Tribune.
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Rents will rise for a while but will decline sharply as condo and single family investors bail leaving thousands of units empty. Desperate investors will be willing to rent for pennies. Look out for summer 2007.
came across few interesting sites on rental stats
http://www.rentometer.com
and another one
http://www.zilpy.com
what do you think?