Rental Increases Motivate Investors, 1st-Time Homebuyers
Rental
Price Increases Cheer New City Investors
Rentals Study Paints Good News, Bad News Picture
To the extent that New City rentals reflect
wider real estate movement, there is good news and bad news for New City tenants. It all depends on how they view
it (and how they chart their personal housing strategy). The bad news was not
unexpected: for the third straight year, rents were up across the nation in
2012, according to apartment housing industry expert MPF Research.
Although rents rose at a slightly slower
pace than in 2011, national forecasts are calling for rent increases in 2013
that match last year’s. The research firm said that apartment rents climbed
3.0% in 2012, down from 4.8% in 2011, but again were above the long-term norm
of 2.5% registered over the past 20 years.
For tenants currently in New City rentals -- both apartments and
single-family homes -- rents may be heading up, but the good news is that this
price pressure has not yet resulted in a less friendly home buying environment.
“Loss of renters to purchase in the now-improving for-sale housing market is
having only a very small impact,” according to MPF’s report. In other words,
rentals are not being lost in large number even though rents are rising, so
floods of first-time homebuyers are not yet adding significant upward pressure
on single-family home pricing.
Even with housing prices
on the rebound, first-time homebuyers who decide to leave the world of New City rentals to buy a home now will still
benefit from the record low interest rates and distressed property bargains
that result in historically affordable home prices.
Another group that would hail rising New City rental rates are investors. "Most places are starved for new product
right now, so properties that will complete over the coming year appear likely
to do incredibly well, generally without hurting the results for the existing
stock," according to Greg Willett, MPF’s vice president.
Whether you are looking to buy or sell a
rental home in New City, conditions warrant
a thorough look at the opportunities available now and those opening this
spring. Call me to get started on a plan
of action! Marcella 845 544 4026!
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