For Renters, Market Likely to Get Pricier

For Renters, Market Likely to Get Pricier

Daily Real Estate News | Tuesday, February 07, 2012

Rising demand and a tightening supply is forcing residential rents upward, and signs point to an increase in prices continuing over the next few years.

Residential renters can expect an increase in rent. Nationwide, rents in December 2011 increased 2.5 percent compared to December 2010, the Consumer Price Index shows. Rising rents have led to rents to reach their highest levels in 2011 since 2007, Reis Inc. reports.

“The supply side is so constrained because nobody has been building for years” due to the economy and the struggle developers face in getting loans, Mark Stapp, professor of real estate practice at Arizona State University, told MSNBC.com.

While rents have risen, the cost of home ownership has dropped. In fact, in 74 percent of major U.S. cities, renting may be more expensive than owning a home, a Trulia.com study has found.

Source: “Office and Home Rent Will Keep Rising and Rising,” MSNBC.com (Feb. 6, 2012)

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About Garry Callis - Legacy Real Estate Group - Colorado

Awesome Colorado Realtor! Check me out at www.legacyrealtor.net

Posted on February 13, 2012, in Market Conditions and tagged , , . Bookmark the permalink. Leave a comment.

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