Is There Still Demand for Houses and Homes for Rent?

by Vine Brook House for Rent

Renting Market is Rapidly Changing:

A report by the National Apartment Association has revealed that the cost of renting in June 2022 was 5.8% higher than last year. Rents nationwide fell 0.2 percent in September 2022. While the price of a home near you to rent continues to rise, there are still good opportunities for smart investors in the market.

The New York City housing market is a buyer's market right now. Many workers are returning to the city in anticipation of the office reopening. During the summer and early fall of 2021, there were bidding wars for rental apartments in many NYC neighborhoods.

Considering the lack of inventory, this is a good thing. Especially since the rental market will likely continue to be a strong one. But it could slow down in the next year or two. This could create a scenario where landlords will have to screen tenants more carefully. There may also be new tax rules and moratoriums on rent increases.

Unlike other major metropolitan areas, Los Angeles is an underdeveloped metro, with more than 400,000 homes lacking. That's 8.4% of the city's total housing stock. Even if more are built, there isn't a large enough supply to meet the demand.

If you want to invest in rental property, you might want to look into a few cities. Prices have been on the upswing for a few years now, and there is some upside in profitability for properties that are built for the purpose of being a rental.

Another reason that rental prices are climbing is that more people are choosing to live in apartments rather than buying their own homes. Among the Baby Boomers, many are looking to downsize into lower maintenance properties. Millennials, on the other hand, are focused on personal development and they prefer to live in rentals rather than owning their own homes.

A few cities have done well and many have struggled. But, overall, the homes for rent have been strong for a few years. It is unlikely that the market will get worse, though it might split into haves and have-nots’ type of market.

For more such kind of information related to rental properties in the US, connect with the team of VineBrook Homes.