It is essential to note that around 43.38 million households in the United States by 2017 were renters. This made the home buying and ownership costs to go up by 14% that year. You find that since then the rate has been steadily increasing and we don’t know what might be leading to this. Here are some of the things that lead to an increase in apartment prices.
The first one is high mortgage rates. It is essential to note that the high mortgage rates are driving more people to delay their home purchases. You find that fewer people are buying making large number to turn to rental properties. It is essential to note that this higher competition will mean more prospective tenants for rental property owners. Because of that they can increase their rental rates without then the fear of losing prospective clients.
Besides, we have increasing high home prices. One of the major cause of high rental apartment rates is higher home prices. You find that in this case, fewer people can afford to buy homes as this means that many people will rent. You can relate this to increased competition and rates for rental apartments.
The next cause is fewer homes for sale. It is essential to note that in December 2016 the monthly US housing supply was at 7.4 rations to houses sold that month which had gone on a downward trend to 6.0 by March 2019. This trend means that there are few homes to sell and this will make it hard for home buyers to find their dream homes. The only option that most of the people will remain with is renting apartments.
Apart from that, we have a strengthening the economy. One thing that you should know is thatthe US see a stronger economy which is partly because of decline in unemployment. Though it worth celebrating but it is a caveat because of the rise of real estate prices. You find that a stronger economy is always followed by rent inflation because it shows that people can spend more.
It is also as a result of smart technology and green features in rental properties. It does not matter whether you rent a room or an entire house, a higher rate may be due to the property’s great ammonites. Here you will have to look out for amenities such as energy-efficient home technology which can include appliance, lighting, HVAC system, programmable thermostat, and many others. With that said, you should be sure to consider such technologies when choosing an apartment. You find that they will always increase the quality of living as you and your family will enjoy the comfort needed.