You find that around 43.38 million households in the United States were renters in 2017. This made the home buying and ownership costs to go up by 14{8547e11abb8607c8970183b59248411953552a85522221fc4ab5ead417b0355d} that year. But this is something that has been increasing every year, and we are wondering what might be leading to this. By the end of this topic, you will be able to discover more reasons why apartment process is so high.
The first one is high mortgage rates. One thing that makes many people delay their home purchases are high mortgage rates. This way fewer people will buying as large percentage turn to rental property. This higher competition means more prospective tenants for rental property owners. This has made them to increase their rental rates without the fear of losing prospective tenants.
Besides, we have increasing high home prices. I can say that higher home prices are the major cause of this increase. It is essential to note that because of that fewer people can buy homes, and this will mean that many people will rent. This brings us back to increased competition and rates for rental properties.
Besides, we have fewer homes for sale. You find that in December 2016 the monthly US housing supply was at 7.4rations to houses sold that month which had decreased to 6.0 by March 2019. Because of that, there are fewer homes to sell, making it hard for home buyers to find their dream homes. The only option that most of the people will remain with is renting apartments.
Besides, the next reason is 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. One thing that you should understand is that a stronger economy is often followed by rent inflation as these improvements signal that people can afford to spend more.
It is also as a result of smart technology and green features in rental properties. Whether 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. It will be therefore necessary that you consider such technologies when choosing an apartment to rent. This is because they will help in boosting the quality of living as this means increased comfort for you and your family.