Why are Apartment Prices so High
It is essential to note that around 43.38 million households in the United States by 2017 were renters. Because of that, the cost of home buying and ownership rose by 14% that year. Since then, the rates have been improving years, and some of us are wondering what might be causing this increase. Keep reading to learn more on the reasons for the increase in apartment prices.
High mortgage rates are one cause of increased apartment prices. You find that one thing that makes homeowners delay their home purchases are high mortgage rates. You find that fewer people are buying making large number to turn to rental properties. It is essential to note that this higher competition will mean 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. I can say that higher home prices are the major cause of this increase. It is essential to note this way fewer people will be able to buy home making many people turn to rentals. 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. This trend means that there are few homes to sell and this will make it hard for home buyers to find their dream homes. What else will they do if not renting an apartment.
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. You find that a stronger economy is always followed by rent inflation because it shows that people can spend more.
Apart from that, it is also caused by smart technology and green features in rental properties. It is always the same thing 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. It will be therefore necessary that you consider such technologies when choosing an apartment to rent. This is because they will help in boosting the quality of living as this means increased comfort for you and your family.
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