What Makes the Apartment Prices to Be So High
It is essential to note that around 43.38 million households in the United States by 2017 were renters. In that year, the costs of home buying and ownership rose by 14 %. Since then, the rates have been improving years, and some of us are wondering what might be causing this increase. Here are some of the things that lead to an increase in apartment prices.
The first one is high mortgage rates. It is essential to note that the high mortgage rates are driving more people to delay their home purchases. You find that fewer people are buying making large number to turn to rental properties. This higher competition means more prospective tenants for rental property owners. This has made them to increase their rental rates without the fear of losing prospective tenants.
Apart from that, increasing high home prices. You find that high home prices are one of the primary reasons for increase in apartment prices. You find that in this case, fewer people can afford to buy homes as this means that many people will rent. You can relate this to increased competition and rates for rental apartments.
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. Because of that, there are fewer homes to sell, making it hard for home buyers to find their dream homes. This way we will have fewer housing options leading to reduced buyers, in turn, makes more people stick to renting.
Besides, the next reason is strengthening the economy. You find that the US is realizing stronger economy thanks to the decline in unemployment. But on the other hand, it is a warning as the real estate price are increasing. One thing that you should understand is that a stronger economy is often followed by rent inflation as these improvements signal that people can afford to spend more.
Apart from that, it is also caused by smart technology and green features in rental properties. Whether you rent a room or an entire house, a higher rate may be due to property’s great ammonites. Like you find that your house can have amenities such as energy-efficient home technology including appliance, lighting HVAC system, programmable thermostat and many more. With that said, you should be sure to consider such technologies when choosing an apartment. One good thing with these features is that they will improve the quality of living by giving you and your family the necessary comfort.