Back Home – Rent Demand Hits Record Lows
In a continuous stretch of poor economic housing data, U.S. reports on the demand for apartments during the third quarter fell to its lowest level since 2009, shortly after the housing crisis of 2007. These steep drops in demand have also caused apartment vacancy to climb up to 5.5%, up from 5.1% in Q2. With rental prices up over 25% in the past two years, people have found other measures for living such as finding roommates or even going back to their parent’s homes. A UBS survey conducted in September found that 18% of American adults had lived rent-free with others during the last six months, up from 11% from the year prior.
To homeowners’ and renters’ fortunate surprise, however, home prices and rental prices are now falling monthly for the first time in two years. In August, home prices had fallen in the largest monthly decrease in 2011, just as the U.S. housing market had begun to recover after the Great Recession. Furthermore, investors should hope to find some trends in these statistics, waiting patiently until new economic housing data may give a tell-tale sign that costs may soon become reasonable and affordable.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.