It has been four years since the recession. What has become of the rental industry? The Industry Insider reports that there is still a steady increase of demand for U.S. lease housing. In that regard, the prices for the said properties are also being driven to the top due to the growing demand.
“The rental vacancy rate — or the share of apartments that are vacant and available for rent — declined 0.5 percentage point to 8.2 percent in the fourth quarter compared to the same period a year earlier.”
What prompted this decrease in property availability and the increasing number of tenants these days? Notably, there were three apparent factors that were cited in the article:
- homeowners being foreclosed, thereby renting instead as it is the only immediate choice
- inability to obtain a mortgage because qualifying standards are higher – with lenders implementing stricter regulations
- the simple fact that where buying a property is concerned, it is always a high risk transaction.
Seeing that property owners are profiting from their investments, others may also follow suit and take part in envisioning more constructions – whether residential or commercial. If supplies do manage to grow steadily, this might also ease the spike momentarily.
Then again, as with any trends, there’s still a possibility that all these would take a reverse. Say for instance that rent prices continually increase until such time that the range is impossibly high for families. There will come a point when buying is yet again a more valid option when talking about the long run.