As home sales increase, what happens to the rental market?

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Real Estate Broker/Owner with RMS Realty, St Lucie, Martin and Palm Beach Counties

What is the effect of rentals on a new improving economy?  See What Fortune magazine has to say about it....

 

FORTUNE -- As America's housing market slowly heals, good news is pouring in from homebuilders: They're building more; they're hiring more workers; they're building bigger houses. Still, some things haven't changed: Renters (as opposed to buyers) are still driving the rebound of the residential construction industry. 

Construction of single-family homes rose to a nearly five-year high in February, the Commerce Department reported Tuesday. Single-family home building, which made up about 66% of housing starts last month, rose 0.5% to a rate of 618,000 units -- the highest level since June 2008. This follows a 31.5% rise in single-family construction in the last year.

Although this might suggest buyers are driving homebuilding again, renters are still playing an unusually large role in the home construction industry -- a trend that's lasted since 2007 when the housing market collapsed. Construction of multi-family homes, typically destined for the rental market, make up about 33% of all residential construction today. That's markedly higher than the average of nearly 20% over the past two decades. More

 

   

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Real Estate services in Port St Lucie, St. Lucie West, Jensen Beach, Fort Pierce, Palm City, Stuart, Hobe Sound, Jupiter and Palm Beach Gardens.

 

 

Owe more on your home than the market value and want to sell?    Call me, I can help.  I am available 7 days a week at 772-924-0430 or you can email me at tonia.rahming@gmail.com

If you are a buyer looking to purchase a home or an investment property or a seller that needs to sell fast, you can reach me at 772-924-0430 or here. Search the MLS on my website. 

 

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Tonia Rahming

Your Florida Realtor

RMS Realty

772-924-0430 phone

866-215-4641 fax

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