The media, regardless of medium, has been headlining the weakness in the residential sales market. While some of this press may be exaggerated, it is true that the market is much softer than it was just a few years ago. The question, however, is how does this affect the rental market? Are there more properties available, and are rents lower?
The short answers to both questions is yes. Many unsuccessful home sellers have made their properties available for rent. This is across the State and in every price point and with every style. Most intriguing is the number of new construction properties that are available. In fact, so many properties downtown are unsold that one project may be 'leased' to a university for student housing. Wow, has 'higher education' changed! The significant increase in supply has also forced down the cost of renting. Many rentals are significantly less than they were two or three years ago. This reduction is cost may not always be reflected in the actual monthly rent.
Sometimes the property owner may waive certain fees or pay for part of the monthly expense.
Maybe they will include a months rent, or possibly free cable, or maybe heat. At the end of the day, the cost of renting has been reduced for the tenants.
We do expect this trend to continue, but not forever. The pool of out-placed former homeowners has been increasing. This may be do a 'wait and see attitude' or some personal economic hardship. Either way, these people will be in need of rental shelter. At some point, this trend will reduce the choices and the rental market will become more expensive.
Everyone needs a place to live.
If you cannot purchase right now, or want to wait a bit longer, and need a rental, please contact us: www.phippsrealty.com; ian@phippsrealty.com or 401 884-1030 ext 72
No comments:
Post a Comment