So what’s going on with the rental market? If you’ve tried to find a home or apartment to rent, you may be finding that it’s hard to find one. Well, when there aren’t as many rental properties to be had, and not as many investment homes on the market, that means less supply and higher rents. It also means that when a rental becomes available, there are plenty of people just waiting to swoop in and take it.
There’s a really good reason for the rental market being what it is and it has to do with the housing market before and after the bubble burst. Before it was really expensive to buy a home. Not so much with renting. Rents were reasonable and there was more than enough supply. After the bubble burst and housing values fell in a big way and the rent vs. own ease flip flopped. It was easy to find a home to purchase and prices fell. The problem was that many people had bad credit from foreclosures or job losses and couldn’t get a mortgage. They still needed somewhere to live so renting was the solution. That meant demand rose. With that rent prices rose and the rental market changed quickly. Any available rental properties were gobbled right up.
Because credit dried up for many people and companies, apartment construction slowed to a standstill. That meant that adding places to rent to the market stopped as well. People who could buy thought twice about doing so since they saw their friends and neighbors lose their shirts in the bubble burst. Younger people also tend not to buy because renting gives flexibility. The younger working public find that if you lose your job, get transferred, or you change jobs, you’re not tied down to a mortgage or have to sell a home.
So the rental market is still tricky. What you may start finding, though, is that places where the owners market has changed from a buyers to a sellers, the rental market will loosen up. Home ownership is coming back into vogue, so renting may become a bit easier.