I’m still waiting for the flood of bank owned homes to come on the market. I would love to upgrade my primary, but I haven’t seen anything that remotely would be a “good deal” for me to move… The 92130 pickings look pretty pathetic, especially for SFH…
I’m not buying we’ll see rents rise 31% by 2015, but I wouldn’t mind either….We’ll see.
Me thinks the media, while maybe have a grasp of what is going on, kinda distorts the degree of the issue. For example, yes there might be a bigger renter pool. But I’m not so sure that it’s soo bad, we’d see double digit rental price increases.
NEW YORK (CNNMoney) — Renters beware: Double-digit rent hikes may be coming soon.
Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.
“The demand for rental housing has already started to increase,” said Peggy Alford, president of Rent.com. “Young people are starting to get rid of their roommates and move out of their parent’s basements.”
By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.
Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years — to a national average that will top $800 per month.
In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years, according to Lesley Deutch of John Burns Real Estate Consulting. In San Diego, she anticipates rents will rise more than 31% by 2015. In Seattle rents will climb 29% over that period; and in Boston, they may jump between 25% and 30%.
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The other interesting data point locally that I would like to figure out is that…Builders are starting to build rental properties again locally. There’s that large luxury apartment being built in end of MM Blvd and 15. And in my own neck of woods, the owner of a big lot is starting construction of a multi-tenant apartment complex after several years of being inactive. I believe a 300 unit luxury complex.. Why is that? Makes me wonder. Makes me think some folks have a better pulse on what’s going on.
