Nationwide house sales are down but rent is increasing

Countrywide rent rates are going up, as fewer people are deciding to purchase. Declining vacancies have been observed for months, as home sales get slower and slower. Landlords nationwide are only too happy to raise the rates, as the scarcity of the resource demands it be done. Resource for this article – Rent beginning to rise nationwide as fewer buy homes by MoneyBlogNewz.

Get the apartment rented with no difficulties

The number of rental property openings has been steadily falling for more than a year, according to Bloomberg. The occupancy rate is very high. The vacancy rate throughout the nation is only at 6.2 percent total. There is a business called Reis Inc., which tracks real estate data throughout the nation. This business observed that there was an 8 percent vacancy rate in April 2010 which dropped to 6.6 percent by the time the year was over. The increased demand is thought to be mostly due to individuals in the 20 to 34 age group, according to Reuters. The amount of individuals needing a place to live is not going down. Still, individuals do not want to purchase yet. It might be very hard to find a new apartment now with all the openings continuing on.

Renting costs more

As fewer apartments and other rental properties are available, the cost of those properties goes up. The same Reis Inc., survey explained that the average for rent is also increasing. The national average effective rent, which is what individuals pay each month, is $991 per month, an increase over $967 a year ago. There was a rise from $1,027 to $1,047 in the asking rent. Rent advertised went up $20. The actual rent paid went up $24 though. Landlords might end up with even higher rent considering the slowing construction on apartment complexes and duplexes.

No reason to buy

American has less incentive to purchase real estate these days. Rates of interest and values are very low. Nevertheless, getting financing is harder than ever. CNN reports that the Federal Reserve said 25 percent of applicants aren’t given loans while borrowers with a credit rating below 760 cannot be backed by Freddie and Fannie. Banks are asking for larger down payments as well, and a 20 percent upfront payment on a $200,000 house isn’t simple for many people.

Articles cited

Bloomberg

bloomberg.com/news/2011-04-06/apartment-vacancies-in-u-s-fall-to-three-year-low-as-rental-demand-climbs.html

Reuters

reuters.com/article/2011/04/06/us-usa-apartments-idUSTRE7353CD20110406

CNN

money.cnn.com/2011/04/06/real_estate/why_you_cant_get_a_mortgage/index.htm