"5.3 Percent Fewer U.S. Homes on the Market Than in 2017" That is the issue and this article really dived into the reason for the up tick in rental rates. It comes from
http://www.worldpropertyjournal.com by
Monsef Rachid and it really is a great article that dives into why some people are not buying homes and instead are renting!
"Saving enough money for a down payment is one of the greatest hurdles to home ownership, and rising rents is one of the main reasons why saving is so difficult. Even in markets where rent growth is slowing, high prices have already been established. With mortgage rates rising and mortgage affordability deteriorating, owning a home may start to feel out of reach for many Americans."
Getting a mortgage today is not as easy as it used to be. After the crash new regulations have been put in place to make sure that it did not happen again. So today's buyers have to be ready to put down some money and have good credit.
This will ensure that the real estate market will have stability and not be a roller coaster ride.
""Over the past two years, rent growth slowed across the country as new apartments hit the market and renters with the financial means to do so increasingly became homeowners," said Zillow Senior Economist Aaron Terrazas. "The slowdown in rent growth was most prominent in the markets that moved most quickly to add units - either because it was easy to build or because of local demands. But the ever-swinging pendulum is again on the move. This spring rent appreciation has perked back up nationwide, though it remains well within a long-term sustainable range. The ebb-and-flow of supply and demand is following slightly different timeliness in different markets, but over the past two years, we have seen similar trends in markets from the Southeast to the Northwest.""
Some people will rent apartments, and others will need a home for their family to live in. With Blackstone and other hedge funds buying residential real estate to lease it effects the housing inventory. I think the market has changed and there will be more renters because of the increase purchasing of investors buying homes to lease. Home buyers sometimes do not want to deal with homes that are not updated to the areas standards. Hedge funds update the properties for far less than most people can.
We offer services for our clients so they can get great pricing on updating a home.
If the home is purchased in the right area you can create income and equity growth. That is the formula that most investors create and live by in home buying. Even if your buying the home for yourself to live in the future value should be considered.
Rental homes will continue to have excellent rents, but you need to have the property located in an appreciating area. If you do not have an Agent please consider me I am Brett my cell is
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Thank you