Wednesday, May 31, 2006

Rents Highest Since 2000

Nationwide rent is going up 5.3% which has been the highest rate in 6 years. Renters are being squeezed with higher energy prices and moderate growth wage. The driving forces behind the hikes is:
  • Job Growth, with 4 million new jobs generated has caused need for rentals.
  • Rising Home Prices, have increased 12 time higher than rent and has forced people to rent instead of buy a home.
  • Condo Conversions, with the increase of conversion have kicked renters out and causing a shortage of apartments and construction being down.
  • Hurricane Katrina, had many renters that are still displaced which has put additional pressure on rentals through the country.

Courtesy of PlanetRealtor 5/30/06.