The multifamily market continues to post gains.
“Rents are rising, vacancies are falling, household formations are growing and rental supply is limited,” according to a recent report, “2012: The Year of the Landlord,” issued by Morgan Stanley. “We believe the demand for rental properties will continue to grow.”
Vacancies of rental properties dropped to 9.8 percent in the third quarter of this year compared to 10.3 percent earlier this year.
Led by strong gains in multifamily housing, groundbreaking for new-housing market soared 9.3 percent in November. Construction of multifamily homes of at least two units increased 25.3 percent in November, the Commerce Department reported last week. Starts for structures with five or more units has increased more than 30 percent from October and is nearly double year-over-year levels, Reuters reports.
Rental costs are also on their way up, increasing 2.4 percent over last year compared with an increase of 0.6 percent in 2010, Reuters reports.
Source: “America Becoming a Nation of Renters,” Reuters (Dec. 27, 2011)
Commentary from Bob Karp of Karp Properties LLC – Indeed the rental market is increasing, partly because many homeowners cannot sell their house, need to relocate and are forced to rent. In the Sierra Vista – Hereford Arizona area, the number of single family homes listed in the Southeast Arizona Multiple Listing Service has gone from approximately 125 in June 2011, to just over 200 on December 27, 2011. In our market the number of available rentals has shot up while the number of tenants has not increased as quickly. Rents have increased, but so has competition among properties. To get the maximum rent, the property must be in pristine condition. Contact our office to get more information about renting your property.