Where Have All The Renters Gone?

By
Property Manager with Investors Choice Property Management CAL BRE LIC# 01124954

Having been in property management since 1992, I have seen up and down markets, but never anything quite like this. Normally we see solid rental activity during a prolonged period of stagnant sales, yet inventory of vacant properties remains fairly high, while rents are flat or even sagging. I suspect more and more people are tightening the belt, moving in with family to save money while the economy works itself out.We have taken the position of getting much more aggressive on rental pricing, to attract whatever qualified renters we can during this tough market.

 

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Comments (8)

Anonymous
Anonymous

Thomas, are seeing rental markets weaken here in some areas of Colorado also.  Probably because there are more lower priced homes to chose from and people are opting to buy.

Jan 26, 2009 07:48 AM
#1
Lucien Vaillancourt
Native Sun Realty, Inc. - Jacksonville, FL
Jacksonville Florida Real Estate

It makes you wonder where people are living?  It seems logical to assume that if sales are slow people must be renting.  Must be a lot of room mate situations going on.

Jan 26, 2009 07:51 AM
Charles Fischer
Housing Market Realty - Merritt Island, FL
Professional Real Estate Services

Thomas:

 

here in Central Florida, demand seems steady, albeit at lower prices.  The lower prices are attracting more first-time homebuyers and may start to affect the rental market a little more here, too.  As you point out many folks may be downsizing and sharing a home to watch costs. 

Charles

Jan 26, 2009 07:57 AM
Kristen Wahl
Re/Max Plus - Rochester, NY
CBR

Thomas, I know just what you mean! I have two vacant rentals I really thought would move quickly and, over two months later, they're still vacant! People have been negotiating the rent more than usual, too! Let's hope we both have things pick up soon!

Jan 26, 2009 07:57 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

I think with the flood that will be getting deeper of Short Sales, you will be very busy, very soon !

Jan 26, 2009 08:28 AM
Anonymous
Shawn Shepherd

We've been been asking that same question at www.RentalForeclosure.com. There were over 2 million foreclosures last year, they must have all moved back in with their families because the demand for rentals seems to be falling everywhere. The only thing I can think is that the investers have purchased so many foreclosure to use as rentals that the rental market became over stuffed with inventory.

Jan 26, 2009 10:13 AM
#6
Thomas R. Martin Broker/Owner ICPM
Investors Choice Property Management - Sacramento, CA
Property Management the way it SHOULD be.

Well, let's hope this next wave of foreclosures brings a few more renters to our doorsteps. The sooner these people (the ones stuck in an ARM with no way out) get thrown back into the rental market, the sooner we can see a drop in the inventory, which is at least a step on the road towards a turnaround. It will be an interesting year to be in real estate. Thank you for your comments.

Jan 26, 2009 10:29 AM
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I've heard that same thing here and thought it made no sense, but your thought of family moving in together actually makes perfect sense.

I thought for sure the rental market was going to be booming with all the foreclosures going on and then we started seeing the opposite, I couldn't figure out where these people were going.

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Jan 29, 2009 04:48 PM