What’s the hottest trend in real estate now? It’s not purchasing that mega mansion on two acres, nor buying that ‘American dream’ single family with the white picket fence. In fact, setting buying aside altogether, the renting rush is the big deal in real estate for the first quarter of 2011.
According to a recent article by Inman News’ real estate update, homeownership reached an all-time high at the peak of the housing surge, with 69.2 percent of the country owning a home. That high has since declined to less than 67 percent, or about 3 million homes that are now rental properties. In addition to this increase in available rental properties, vacancy rates for rentals have also declined, from a rate of 8 percent in 2010 to a rate of 6.2 percent just a year later.
Many factors have contributed to this increase in rentals, such as foreclosures and economic pressures. However, the major driving factor is an increase in demand for urban living – such as apartment, condominiums and high-rise luxury rentals. Investors have also been buying up foreclosed properties and multi-dwelling buildings, as they are looking to take advantage of the current market conditions.
Apartment-building construction has also increased as a response, however many construction companies have felt the impact of the economic recession and many projects are proceeding slower than planned or have halted altogether. If demand for rental properties continues to rise and the number of available properties for tenants continues to decrease, we may be facing a market shortage in many large metropolitan areas over the course of the next couple of years. To get ahead of the market, it’s a good idea to start looking for your next rental home or condominium purchase today.
My past clients have benefited from my extensive market knowledge, enthusiasm for presenting property and commitment to managing their needs – and I’m here to help you with the same. After establishing your Real Estate goal, executing your transaction becomes my responsibility 7 days a week, and I work hard to maintain a clear path of communication with every one of my clients. Contact me today to see how I can help you buy or sell your home.