The Reasons Why Apartment Prices are So High
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% that year. Since then, the rates have been improving years, and some of us are wondering what might be causing this increase. Keep reading to learn more on the reasons for the 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. This is because fewer people are buying and the larger percentage are turning to rentals. This higher competition means more prospective tenants for rental property owners. Because of that they can increase their rental rates without then the fear of losing prospective clients.
The other reason is increasing high home prices. You find that high home prices are one of the primary reasons for increase in apartment prices. You find that in this case, fewer people can afford to buy homes as this means that many people will rent. This brings us back to increased competition and rates for rental properties.
Not only that but we also 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. This will mean that there are fewer homes to sell and home buyers will have a hard time finding their dream homes. This way we will have fewer housing options leading to reduced buyers, in turn, makes more people stick to renting.
The next reason is strengthening the economy. You find that the US is realizing stronger economy thanks to the decline in unemployment. But on the other hand, it is a warning as the real estate price are increasing. It is essential to note that a stronger economy is also often followed by rent inflation as it signals that people can afford to 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. It will be therefore necessary that you consider such technologies when choosing an apartment to rent. One good thing with these features is that they will improve the quality of living by giving you and your family the necessary comfort.