CNBC’s Diana Olick recently reported that rents in the residential housing sector continued to rise in 2014. She interviewed Jed Kolko, Chief Economist at Trulia, who revealed:
“Rents are rising because of strong demand that supply hasn’t kept up with. Nearly all the new households are renters, and young people moving out of their parents’ homes will keep fueling rental demand.”
Where are rents headed in 2015?
The question now is where rents will be heading over the next twelve months. In a press release last week, Zillow chief economist Dr. Stan Humphries predicted residential rental prices will continue to climb in 2015:
“Home value appreciation will continue to cool down, from roughly 6 percent now to around 2.5 percent by the end of 2015. But rents will see no such slowdown, and will continue to grow around 3.5 percent annually throughout 2015. As renters’ costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market.”
However, those potential buyers must make a decision quickly because, as Kolko explains:
“Paying more on rent makes it harder for would-be homebuyers to save for a down payment.”
Bottom Line
Ryan Severino, a senior economist at Reis, in Olick’s article stated the obvious:
“Landlords should still be able to push asking rent increases on to their tenants.”
If you are thinking about buying a home in 2015 instead of continuing to rent, it probably makes sense.
Contact us for all your Real Estate Needs.
About Amy Dginguerian
Most people know Amy Dginguerian from her time in front of the camera as an actress, model and host, or behind the lens as a Producer in Hollywood. Amy built her Hollywood career with a simple strategy; be professional, be persistent, be courteous and be honest. Her hard work and determination took her from starring roles on TV and Film, to gracing the covers and inside of hundreds of magazines to Campaigns for some of the biggest companies in the world. She is also a 2-time Billboard Recording artist and also an Author.
But what most people don’t know about Amy Dginguerian is that she has always had a great appreciation and knack as a businesswoman. She started a modeling agency in one of the most competitive Cities in the world, (Hollywood) successfully represented over 400 models and talent. She kept her business thriving while traveling the world as a “WWE Diva.” Amy also took her love of business while she was garnering success as an actress and model and parlayed it into something that she truly loved- homes. Amy’s passion for homes and home ownership was realized after she bought her first investment property. She was fortunate enough to understand the real estate market and make smart investments that truly paid off. While most of her peers were struggling to make rent, Amy felt blessed to own a multitude of money making properties.
Amy became a Mom for the first time to miracle twins in May of 2009. Becoming a mother helped stir the fire of appreciation she has always had for home ownership and Real estate investments and so she decided to become a Licensed Sales Agent. She is also the Co-founder of JustSold.com.
Designations and Certificates:
• Senior Real Estate Specialist (SRES)
• Creating Value for Your Clients
• Video Marketing
• Managing Your Online Presence
• Putting Technology to Work for your Clients
• Client Negotiations
• Navigating the Social Media Maze
