The past few years have given landlords plenty of reasons to smile. The rise in the demand for apartments for rent and the apparent shortage of options, have led to a surge in rents. Every financial year, rents are on the increase and many experts deem that the trend is set to continue.
An affordability gap
Since the end of the Great Recession a few years ago, studies have shown that employment has risen and many citizens are choosing to move into apartments of their own. While this is a positive sign, many renters acknowledge that the ever-rising apartments rents are proving to be a strain on their pockets and are keeping them from buying homes of their own. This combined with the negligible increments in earning capacity is not just affecting the average citizen, but also the U.S. economy at large which relies heavily on consumer spending.
The rising demand for rented apartments has also led to a surge in construction. Many construction groups have jumped at the opportunity to expand business and construct properties in a variety of geographies across the U.S. Builders are particularly counting on young citizens, who are freshly-out of college and are looking to move into their own places, to spend on rented properties. The younger crowd, they say, are still wary of the home-buying process and would prefer rented pads in their initial working years.
While luxury rental apartments are on the rise now, there are plenty of construction groups who are focussing on providing housing for those with an average income in a bid to make the best of profits.
A job creation boom and an increase in the average citizen’s ability to spend, has led to a trend of high demand for rental properties in the U.S. While experts say that the spurt in construction will ease up the demand a bit, it is unlikely to make a huge dent in rising rent rates for the years to come.