Great news for homeowners and investors… due to the current downturn in the real estate market, a surge in foreclosures, and tightening credit standards, an increasing number of Americans are choosing to rent.
With vacancy rates for rental properties at record lows, requested rental rates at near-historic highs, and an increase in demand for apartments, the time may be right for investment in rental properties.
“Rental housing is simply more attractive than for-sale housing for many people right now. If they’re waiting for a great deal to come along before they buy, they may be thinking it’s best to rent in the meantime,” says Cathy Williams, director of the National Housing Division.
And the numbers bear it out: median rental applications were $1,052 for rental units completed during the third quarter of 2007, topping the previous high of $1,025; strongly suggesting a general improvement in the rental market.
Regionally, the Northeast, West and Midwest have the highest median asking rents, with the median asking rents reported in all three places at more than $1,150. While these rent levels are fairly common in the West and Northeast, this is the first time rent levels have reached these heights in the Midwest.
Not surprisingly, asking rents for existing apartments have also steadily improved and are at or near all-time highs; which suggests that the rental market is strong and a good time to capitalize on the mortgage mess.
With new loans becoming difficult to obtain due to strict lending guidelines based on forecast default or foreclosures, there is another opportunity for homeowners to purchase homes with leases. There are several websites that offer lease purchase without a new loan, such as www.butterflylister.com
