Why are Apartment Prices so High
It is essential to note that around 43.38 million households in the United States by 2017 were renters. In that year, the costs of home buying and ownership rose by 14 %. But this is something that has been increasing every year, and we are wondering what might be leading to this. By the end of this topic, you will be able to discover more reasons why apartment process is so high.
High mortgage rates are one cause of increased apartment prices. One thing that makes many people delay their home purchases are high mortgage rates. You find that fewer people are buying making large number to turn to rental properties. This higher competition means more prospective tenants for rental property owners. This has made them to increase their rental rates without the fear of losing prospective tenants.
Besides, we have increasing high home prices. I can say that higher home prices are the major cause of this increase. It is essential to note this way fewer people will be able to buy home making many people turn to rentals. This brings us back to increased competition and rates for rental properties.
Not only that but we also have fewer homes for sale. It is essential to note that in December 2016 the monthly US housing supply was at 7.4 rations to houses sold that month which had gone on a downward trend 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. The only option that most of the people will remain with is renting apartments.
Apart from that, we have a strengthening the economy. It is essential to note that the US see a stronger economy, which is partly caused by a decline in unemployment. Though it worth celebrating but it is a caveat because of the rise of real estate prices. One thing that you should understand is that a stronger economy is often followed by rent inflation as these improvements signal that people can afford to spend more.
Besides, we have 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. This is because they will help in boosting the quality of living as this means increased comfort for you and your family.