Rental Market Hit New Highs in June

By
Real Estate Agent with Hart Real Estate Solutions RRE-BRO-LIC-24638

Rental prices continue to grow in the United States Housing Market making many wonder when and where the tipping point may come. The national effective growth rate for rental values went up by 5.1% in June to a 47 month high. Effective rent growths have also been at 5% for 5 consecutive months, a streak not seen since April 2009.

Tight occupancy has pushed rent even higher as the intense competition has allowed landlords to consistently raise rates while still finding tenants. The US rental occupancy rate now sits at 95.3 percent. Although renters have struggled to keep up with the recent price growth, they’ve still made the payments work—but for how long renters can afford these high rates is to be seen.

The US Housing market may be catching up from the housing recession, when a very small number of apartments were made. Now, renters can only hope the recent economic growth will help builders increase home inventory and drive landlord competition to lower prices. Even despite low mortgage rates, the rising home values have kept many renters away from buying a home. Oddly, buying has been cheaper than renting in 66% of the national housing market, yet renters continue to pay steep prices for a place to stay.

In Bozeman, the local real estate market has acted as a sort of microchasm for trends seen in the US housing market. Bozeman continues to try to add additional inventory to keep rent prices low and have also looked into lowering lot sizes to increase the number homes they can build on a space of land.

 

Source: http://realtormag.realtor.org/daily-news/2015/07/27/booming-rental-market-sets-new-records

 

Comments (3)

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Tim, always enjoy videwing information on other communities.  Thanks for sharing with us in ARLand.

Aug 07, 2015 04:36 AM
Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

Rent's are going up, and fast. Great for landlords and a great opportunity for people to buy a home! Thanks for sharing the statistics, always nice to quote numbers.

Aug 07, 2015 04:39 AM
Jerry Lucas
ABC Legal Docs LLC - Colorado Springs, CO
Mobile Notary Colorado Springs, CO Notary Training

Rising rents without rising incomes is a problem.  If renters have to spend more money on rent, they have less money to spend on other goods and services, and less income available for saving for a down payment or retirement.

Aug 07, 2015 04:48 AM