2009 Real Estate Prediction - Rents will Rise
Prediction: 2009 will be a good year to be a landlord, as five factors collide to make rents rise in 2009.
- 1. An estimated 1.9 million homes will be foreclosed upon in 2009, which will tranform these former homeowners into tenants.
- New construction will grind to a halt, which means fewer rental properties will be available.
- As credit remains tight, potential buyer’s will be forced to renew their current leases after they are turned down for a mortgage.
- Consumer fear and an uncertain employment picture will keep would-be, credit worthy buyer’s on the sidelines, meaning less turnover in rental housing.
- Thousands of Americans who have been burned by recent homeownership will decide that ownership is not worth the risk and trouble. They will sign a lease for the ease and flexibility, and happily return to rental living.
Investors and Landlords Take Note: This convergence can be summed up in two words. Higher Rents. As the demand for rental units outstrips the supply, the upward pressure on rental rates will occur naturally.
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Tags: 2009, predictions, Real Estate, rental property, rents