What’s the Rental Market Like?

Zonda, the top source for data and intelligence on the construction of new housing from SFR to apartments released an interview last week of their Multi-Family Managing Principal Kimberly Byrum. She was asked what is the rental market like? She said, “The market today can be categorized in two words: NO AVAILABILITY. Why? Our country has the lowest number of rental units available on record. Second, our lease renewal rate is 58.3%, the highest on record.

Why is demand so strong in the apartment market? Byrum said, “There are many factors driving the rental market, including demographics, increased savings, growing household formations, a rise in relocations, income growth, and the higher cost of homeownership.” I will key in on the last reason because if mortgage rates remain above 5% for several months this will force more people to remain renters, thus increasing rental demand which will cause RENTS TO RISE. There is no place to get away from soaring housing costs besides moving back in with your parents. And the ONLY way to lock in your housing costs is by buying a home.