It is essential to note that around 43.38 million households in the United States by 2017 were renters. This made the home buying and ownership costs to go up by 14% that year. Since then, the rates have been improving years, and some of us are wondering what might be causing this increase. By the end of this topic, you will be able to discover more reasons why apartment process is so high.
Apartment prices are rising because of high mortgage rates. You find that one thing that makes homeowners delay their home purchases are high mortgage rates. You find that fewer people are buying making large number to turn to rental properties. You find that this higher competition means more prospective tenants for rental property owners. This is where they take advantage because they can increase their rental rates without the fear of losing prospective clients.
Apart from that, increasing high home prices. You find that high home prices are one of the primary reasons for increase in apartment prices. It is essential to note that because of that fewer people can buy homes, and this will mean that many people will rent. This is the same thing we discussed increased competition and rates for the rental properties.
Besides, we have fewer homes for sale. One thing that you need to know is that in December 2016 the monthly US housing supply was at 7.4 rations to houses sold that month which had decreased to 6.0 by March 2019. This trend means that there are few homes to sell and this will make it hard for home buyers to find their dream homes. This way we will have fewer housing options leading to reduced buyers, in turn, makes more people stick to renting.
Apart from that, we have a strengthening the economy. One thing that you should know is thatthe US see a stronger economy which is partly because of decline in unemployment. It is true that they should be celebrating, but it is a caveat because of the rise in real estate prices. You find that a stronger economy is always followed by rent inflation because it shows that people can spend more.
Apart from that, it is also caused by smart technology and green features in rental properties. It is always the same thing you rent a room or an entire house; a higher rate may be due to property’s great ammonites. Such amenities include energy-efficient home technology such appliances, lighting, HVAC system, a programmable thermostat among others. With that said, you should be sure to consider such technologies when choosing an apartment. One good thing with these features is that they will improve the quality of living by giving you and your family the necessary comfort.