CNBC’s Diana Olick reported recently that rents in the residential housing sector continued to rise in 2014. She interviewed Jed Kolko, Chief Economist at Trulia, who revealed:
"Rents are rising because of strong demand that
supply hasn't kept up with. Nearly all the new households are renters,
and young people moving out of their parents' homes will keep fueling
The question now is where rents will be heading over the next twelve months. Last week, Zillow chief economist Dr. Stan Humphries predicted residential rental prices will continue to climb in 2015:
"Home value appreciation will continue to cool down,
from roughly 6 percent now to around 2.5 percent by the end of 2015. But
rents will see no such slowdown, and will continue to grow around 3.5
percent annually throughout 2015. As renters' costs keep going up, I
expect the allure of fixed mortgage payments and a more stable housing
market will entice many more otherwise content renters into the housing
However, those potential buyers must make a decision quickly because, as Kolko explains:
“Paying more on rent makes it harder for would-be homebuyers to save for a down payment."
Author:Ann Marie Cancro Phone: 717-468-1301 Dated: December 16th 2014 Views: 455 About Ann Marie: LICENSED: Licensed Real Estate Professional since October 1990.
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