Here are 5 reasons why the cost of renting a home or apartment is on the rise.
Inflation is one of the key reasons why the cost of rent is increasing
The federal government has increased mortgage Interest rates which is a contributing factor why the cost to rent a home or apartment is higher because the monthly payment for many landlord are going up. Some landlords have their rental properties on commercial loans which are typically variable interest rate loans – these mortgages have experienced sizable increases in monthly mortgage payments. Most landlords have to pass that additional monthly cost onto the buyer by raising the rent.
The same principal applies when there is an increase in real estate property taxes and when the insurance industry has insurance rate increases on homeowner’s insurance. When there are increases in costs especially due to inflation, the landlord will generally need to increase the cost of rent to cover their added expenses otherwise they could actually lose money.
Something people usually aren't thinking about is that we have experienced a sizable Increase in population. An increase in population means more people need housing and that creates even more demand for rentals and housing. The current demand for rentals and housing is the highest I have ever seen during my 37 years in the real estate industry and rental pricing is dictated by the laws of supply and demand.
People are living longer and there are far more people who are choosing to stay in their home during their later years. This means houses and apartments that would typically have become available to sell or rent are not becoming available like they had years ago.
Are you thinking about making a move? The Sam Miller Team of REMAX Stars Realty is here to help - Feel free to call or message us at 740-397-7800.
Sam Miller
REMAX Stars Realty
710 South Main Street
Mount Vernon, Ohio 43050
Call 740-397-7800
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