Vacancies Go Down, As Rent Goes Up
While banks tighten their purse strings and interest rates continue their climb on mortgages, first-time home buyers are seeing themselves priced out of the market. Many young couples are forced to develop other alternatives and seek out housing in multi-family properties. The vacancy rates on these units have been slowly drying up for several years, thanks to the economic climate.
Currently, real estate developers have been able to meet the increased demand for multi-family dwellings, but only by a slim margin. The real estate forecast for the apartment rental market shows vacancy rates edging up slightly by 0.1% (4% total). For the number of new property construction being developed, the minimal increase is troublesome. Any vacancy rate listed below 5% is considered to be a landlord's market, which equates to higher rental rates and more struggles for renters.
Because there are so few properties available for rent, dozens of applicants clamor for any meaningful opening. In order to command the most income for their asset, rents go up and the weed-out process thins the applicant submissions and gives the landlord the most lucrative options.
The National Association Of Realtors has given a bleak forecast for renters. They predict that rental rates will rise 8% by the end of 2014. The interesting part about their report is the list of vacancy rates nationwide.
In the United States, the cities with the lowest multifamily vacancies are:
* New Haven, CT (1.9%)
* Syracuse, NY (2%)
* New York City, NY (2.1%)
* San Diego, CA (2.1%)
Another important metric for analyzing the health of our economy lies in the lowest office vacancy rates. During the 3rd quarter of this year, cities with the lowest office vacancies were:
* Washington DC (9.7%)
* New York City, NY (9.8%)
* Little Rock, AR (12.1%)
* Birmingham, AL (12.4%)
High inflation has created a buyers market for owning rental property. 401 K's and saving for retirement, in general, are difficult. If you have ever thought about diversifying your retirement and not having all of your eggs in one basket, seriously give consideration to investing in rental property.
There are several Free e-books on the subject. I downloaded a basic introductory e-book from a company, called Retire On Income . After checking out a few of their YouTube videos and getting my courage up, I actually invested in some property and am excited about prospects in the future, as well as the piece of mind that comes with knowing that your money is actually working for you, instead of a bank.
Currently, real estate developers have been able to meet the increased demand for multi-family dwellings, but only by a slim margin. The real estate forecast for the apartment rental market shows vacancy rates edging up slightly by 0.1% (4% total). For the number of new property construction being developed, the minimal increase is troublesome. Any vacancy rate listed below 5% is considered to be a landlord's market, which equates to higher rental rates and more struggles for renters.
Because there are so few properties available for rent, dozens of applicants clamor for any meaningful opening. In order to command the most income for their asset, rents go up and the weed-out process thins the applicant submissions and gives the landlord the most lucrative options.
The National Association Of Realtors has given a bleak forecast for renters. They predict that rental rates will rise 8% by the end of 2014. The interesting part about their report is the list of vacancy rates nationwide.
In the United States, the cities with the lowest multifamily vacancies are:
* New Haven, CT (1.9%)
* Syracuse, NY (2%)
* New York City, NY (2.1%)
* San Diego, CA (2.1%)
Another important metric for analyzing the health of our economy lies in the lowest office vacancy rates. During the 3rd quarter of this year, cities with the lowest office vacancies were:
* Washington DC (9.7%)
* New York City, NY (9.8%)
* Little Rock, AR (12.1%)
* Birmingham, AL (12.4%)
High inflation has created a buyers market for owning rental property. 401 K's and saving for retirement, in general, are difficult. If you have ever thought about diversifying your retirement and not having all of your eggs in one basket, seriously give consideration to investing in rental property.
There are several Free e-books on the subject. I downloaded a basic introductory e-book from a company, called Retire On Income . After checking out a few of their YouTube videos and getting my courage up, I actually invested in some property and am excited about prospects in the future, as well as the piece of mind that comes with knowing that your money is actually working for you, instead of a bank.
Source...