Multifamily Rents to Spike 8% Over Next Year
The forecast is sunny and bright for landlords. 60% of property managers nationwide expect rental rates to rise about 8% in the next year, a Rent.com survey of 500 property management customers reveals. To put that in perspective, that's almost three times the annual wage increase most employees receive.
What's more, rental vacancies are at their lowest in nearly 20 years at 6.8%, according to the US Census Bureau. With that kind of edge, 55% of property managers are less likely to lower rents or offer concessions to fill vacancies.
It does, however, mean that more renters are spending more than the recommended 30% of their income on rent, and require a guarantor. Because of this, 34% are staying put and renewing leases, compared to 29% in 2014.
Already more than a quarter of renters spend more than 50% of their income on housing, a number expected to rise by 11%—from 11.8 million to 13.1 million—between now and 2025. Of course, New York and San Francisco are still the most expensive places to rent. [MW]
