Cities with the Strongest Rental Markets
With the real estate and housing markets in turmoil recently, you might expect the rental market to follow suit. "Not so," says realtor Diane Clark of Parsippany, N.J.
"We are actually seeing rental rates for apartments and other properties rise in most parts of the country, probably as a result of the housing market downturn," continues Clark. Thankfully for investors and landlords, the news comes as a refreshingly positive note, especially as the real-estate market has been plagued by recent surge in defaults and foreclosures as a result of predatory, no-money down lending practices.
In recent months, asking rental rates have increased up to 14% in some regions. Moreover, vacancy rates of rental properties have hit all time lows, making the rental market prime time for both investors and renters. The surge in families and individuals choosing to rent rather than own can most likely be attributed to increasingly stringent lending standards.
"Most people with decent credit histories are finding themselves turned away by mortgage lenders," says Clark. The stringency of lenders is leaving renting the only option for many families who can either not qualify for a traditional loan, or would get struck paying astronomical interest rates.
And, many rental markets are hot for investors. With falling housing prices, investors have the option of scooping up discounted properties and renting out the home until the market picks up again and investors can then sell for a hefty profit.
According to Forbes.com, the following are the best markets for renters:
4. Las Vegas
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