The Reasons Why Apartment Prices are So High
You find that around 43.38 million households in the United States were renters in 2017. Because of that, the cost of home buying and ownership rose by 14{d401a85e0109a53763cd26ec289d8d88fb9828946f23e8a355aa9e652695f6de} that year. You find that since then the rate has been steadily increasing and we don’t know what might be leading to this. Here are some of the things that lead to an increase in apartment prices.
High mortgage rates are one cause of increased apartment prices. You find that one thing that makes homeowners delay their home purchases are high mortgage rates. You find that fewer people are buying making large number to turn to rental properties. You find that this higher competition means more prospective tenants for rental property owners. Because of that they can increase their rental rates without then the fear of losing prospective clients.
The other reason is 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 is the same thing we discussed increased competition and rates for the 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. What else will they do if not renting an apartment.
Apart from that, we have a strengthening the economy. You find that the US is realizing stronger economy thanks to the decline in unemployment. Though it worth celebrating but it is a caveat because of the rise of real estate prices. You find that a stronger economy is always followed by rent inflation because it shows that people can spend more.
It is also as a result of smart technology and green features in rental properties. It is always the same thing you rent a room or an entire house; a higher rate may be due to 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.
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