Rent Increases Expected To Continue Through 2015

Dated: December 8 2014

Views: 373

    Renee Plumlee, REALTOR®
    Ivy League Realty 
    Let me help you get away from the rent race and into your own home with the help from your lender of choice or one of my referrals. 

    by The KCM Crew on December 8, 2014 in For Buyers

    Rent Increases Expected to Continue through 2015  Keeping Current Matters
    CNBC’s Diana Olick recently reported that rents in the residential housing sector continued to rise in 2014. She interviewed Jed Kolko, Chief Economist at Trulia, who revealed:
    "Rents are rising because of strong demand that supply hasn't kept up with. Nearly all the new households are renters, and young people moving out of their parents' homes will keep fueling rental demand."

    Where are rents headed in 2015?

    The question now is where rents will be heading over the next twelve months. In a press release last week, Zillow chief economist Dr. Stan Humphries predicted residential rental prices will continue to climb in 2015:
    "Home value appreciation will continue to cool down, from roughly 6 percent now to around 2.5 percent by the end of 2015. But rents will see no such slowdown, and will continue to grow around 3.5 percent annually throughout 2015. As renters' costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market."
    However, those potential buyers must make a decision quickly because, as Kolko explains:
    “Paying more on rent makes it harder for would-be homebuyers to save for a down payment."

    Bottom Line

    Ryan Severino, a senior economist at Reis, in Olick’s article stated the obvious:
    "Landlords should still be able to push asking rent increases on to their tenants."
    If you are thinking about buying a home in 2015 instead of continuing to rent, it probably makes sense.

    Blog author image

    Terry Ivie

    Texas Real Estate Consumer Protection Notice

    Want to Advertise on this Site?

    Latest Blog Posts

    How To Know If Its Time To Buy A Home

    Owning your own home has long been part of the American dream. It's a goal most of us rightfully aspire to, and one that can often help build wealth. Indeed, 64% of Americans own a home today. If'

    Read More

    Health Benefits Of Strawberries

    Did you know that strawberries have been around since ancient Roman times; and were used for medicinal purposes such as: alleviating inflammation, fever, kidney stones, bad breath, gout and more!

    Read More

    Distorted SelfImage

    Have you ever been to an amusement park that had those crazy mirrors that make you look funny? There are mirrors that make us look really tall and thin. Others that make us look short and wide.

    Read More

    The Telltale Signs Its Time To Refinance

    Have you been giving some thought to how you might be able to save money if you refinanced your mortgage? How do you decide if it’s really worth it? Here are four signs that show you might

    Read More