The Residential Rental Market Heading into 2016
Below are quotes from experts as well as industry reports & articles that cover the residential rental market in the U.S.
“Make no mistake: Despite this recent slowdown in rental appreciation, the rental affordability crisis we’ve been enduring for the past few years shows no signs of easing, especially as income growth remains weak. It will take a lot more supply, and a lot more renters-turned-homeowners, to fully reverse this.”
“Rents and home prices are expected to exceed income growth into next year because of the insufficient creation of new home construction and the detrimental impact its inadequacy continues to have on housing costs in several markets.”
“We know rents are rising faster than incomes, and now we have data to show that many renters don’t have enough to pay all their debts each month, which is forcing them to make tradeoffs, such as cutting spending on other items.”
The reports and articles…
“Rising rents won’t let up in 2016, and will continue to set new records. The next year will bring the least affordable median rents ever.”
“68% of property managers predict that rental rates will continue to rise in the next year by an average of 8%”
“The primary reasons cited for the latest rises were increasing demand and low inventory. Vacancy rates for rental housing nationally dropped to a 20-year low of 6.8 percent in the second quarter…Rents and occupancies are currently hovering at historic highs as supply isn’t keeping up with demand.”
If you are one of the many renters debating a home purchase, let’s get together to discuss your options, before your rent goes up!
Source: Michigan Real Estate News, John Rice Realtor Latest Real Estate News