Louisville Kentucky Home Insider: Where is the Rental Market Headed Because of Today's Market?

Where is the Rental Market Headed Because of Today's Market?

Rental Market Louisville Kentucky


Because of the challenges in the current economy, many families have either decided to rent or been forced to rent. How has this impacted rental options and the cost of the available options?

HousingWire recently quoted Paul Dales, senior economist with Capital Economics:

“As a consequence of Americans being less willing and less able to buy a home, the number of households in rented accommodation is set to rise by at least 850,000 a year over the next few years.”

The price of anything is determined by supply and demand. As demand increases, the price of an item will increase unless there is an equal increase in supply. The article mentioned above said:

“Dales said in his research that rental vacancy rates will fall again in the future, pushing prices up. The median rent is already up to $712 per month—well above the average monthly mortgage cost of $647, Dales reported.

He estimates vacancies in the home-rental market will push average rental rates up as much as 5% by early 2013.

Ultimately what this means is 2 things:

1. Great time of potential investors to get into the rental market

2. If you are able, it is a great time to BUY rather than RENT...odds are owning your home will be cheaper than paying someone else!

Sean S. Williams
Licensed Broker, Realtor
®, ABR®, e-Pro®
1st Time Buyer & Relocation Specialist
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Semonin Realtors
of Louisville, Kentucky
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Comment balloon 3 commentsSean Williams • March 21 2012 08:56AM

Comments

If too many people get into the rental game because it is so hot then we may see a bubble there too.  Right now landlords are gouging tenants with high rent prices just because they can.

Posted by Morris Massre, Real Estate Instructor Broward County Florida over 6 years ago

Morris, that's actually a valid point and I have seen first hand how landlords are continuing to raise the prices. My hopes are that eventually the rental market will be too saturated and prices will become so high and unreasonable, renters & potential home buyers will see the cost benefit in purchasing a home rather than giving away their money to someone else!

Posted by Sean Williams, Your Louisville Realtor (AcklesWilliams of Semonin Realtors) over 6 years ago

That's right Sean! A great time to buy in American! Get them off the fence! Prices down and rates still low! Later prices will be stable and rates will go up! Time to by!

Posted by Lauren Selinsky Broker CRS, "Your California Real Estate Broker" TM #oclauren (California Coastal Estates) over 6 years ago

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