Prices go up when demand exceeds supply. The people leaving are homeowners who are selling. We have 30% vacancy in homes for sale, but what is the vacancy rate in rentals?
More and more people want to rent, pushing up the price.
The rental stock is shrinking, as apartment conversions were made into condos, and rental stock has not been replenished for a long long time.
The CPI which is 40% rents, is going up because rents are rising. As housing becomes unaffordable from rising interest rates, people choose renting over buying. This will exacerbate when lending standards tighten next year.
A few months ago, I was tossing around the idea of locking in a 2 year lease, and I couldn’t figure out whether rents would go up or down. I had a list of arguments on both sides. I ended up signing the 2 year lease. Sounds like it was a lucky decision.
I am wondering if you can quantify your search. How much is the increase? Apartments or houses?
