The Rental Affordability Crisis
It’s just not getting any easier for renters… With homeownership flirting with 48-year lows, demand for rental units has exploded with little supply on market. In fact, according to the latest CBRE Group Inc. report, apartment demand has remained “robust in the third quarter at 4.2 percent.”
That’s the lowest read since 2001 when vacancy sat at 3.9 percent.
"The apartment market is expected to continue to tighten through the end of this year and into 2016 amid strong rental demand and solid U.S. economic growth,” says Jeff Havsy, America’s chief economist for CBRE. “
Now, according to a new survey from Rent.com, rental rates could run up an average of 8% through 2016, according to more than the two-thirds of property managers surveyed. Up to 64% of those surveyed cite the increased demand for rental units and record low inventories on market.
There are very few incentives for rents to decrease, as homeownership sits at lows.