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.
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.
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