Rising Rents Make Rental Properties More Attractive

CNNMoney.com is reporting that rents are rising as home prices fall. According the article the cities with some of the largest price increases in the past 12 months were:

  • Sarasota Florida -12.9%
  • Miami, Florida -12.1%
  • San Francisco, California 11.1%
  • Middlesex County, Massachusetts – 10.6%
  • Edison, New Jersey – 10.5%

As well, they reported that the vacancy rate for apartments was just 4.9%. Even cities in the Midwest saw significant price increases.

Market Forces

In a recent article, I shared about a potential wave of foreclosures that is yet to come. Should these foreclosed properties hit the market, pricing on homes should continue lower.

As well, those souls that have lost their homes to foreclosure or via short-sale  may be forced to rent for a period of time. This increased demand for rental properties, would put continuing upward pressure on rents.

These forces lead me to believe that it is a good time to own residential rental real estate.

If you would like more information on how you can augment your retirement with real estate, please contact us. Or call me at (925) 385-8798.

For other articles about investing in real estate, head over to www.maclennaninvestments.com.

About Peter Maclennan

Peter Maclennan is Sr. Real Estate Broker at Maclennan Investment Group, Inc. a real estate brokerage and advisory firm. From novice investors to institutional property owners Peter provides tailored service to his client's needs. Call him today to discuss your real estate need at (925) 385-8798 or visit him on the web at http://www.maclennaninvestments.com. CA BRE#01801793

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