Prediction:  2009 will be a good year to be a landlord, as five factors collide to make rents rise in 2009.  

1. 1.  An estimated 1.9 million homes will be foreclosed upon in 2009, which will tranform these former homeowners into tenants.
2. New construction will grind to a halt, which means fewer rental properties will be available.
3. As credit remains tight, potential buyer’s will be forced to renew their current leases after they are turned down for a mortgage.
4. Consumer fear and an uncertain employment picture will keep would-be, credit worthy buyer’s on the sidelines, meaning less turnover in rental housing.
5. 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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