As the real estate market fluctuates, so does the rental market. At the moment, the rental scene is looking increasingly uninviting. A recent article in MarketWatch details how landlords are taking advantage of the intensely competitive rental market and will be hiking rates accordingly.
The numbers are staggering:
- 88% of property managers raised their rent in the last 12 months and 68% predict that rental rates will continue to rise in the next year by an average of 8%, according to Rent.com.
- Many renters are spending more than 30% of their income on rent (the amount generally recommended) and need help qualifying for the lease.
- Around 43% of property managers reported seeing an increase in the number of applicants who do not meet the income requirements on their own and require a guarantor.
- 34% of property managers reported that renters are holding on tight to their apartments and renewing their leases, either because they face higher rents elsewhere or they’re choosing not to buy property.
- The number of Americans spending more than half of their income on rent will rise by 11% from 11.8 million in 2015 to 13.1 million in 2025, a survey released last month by Harvard University’s Joint Center for Housing Studies and Enterprise Community Partners found.
If you’re going to be spending that kind of money, you should be getting something tangible out of it – like stability, equity and pride of ownership!
If you’re still in the rental rat race, stop! Take advantage of low interest rates and more lenient financing, and buy a home of your own. It’s probably the best investment you can make in your future!
Myers Barnes is America’s favorite new home sales trainer, author, speaker and consultant. For more information, please visit www.myersbarnes.com.