Increasing rents expected for 2016
There’s no denying that renters all over the U.S. are seeing rent increases, but it looks like increasing rents are expected for 2016 as well. Annual rent growth in September was 5.2 percent, the highest since 2011 and the eighth-straight month the rate has been five percent or higher, according to Axiometrics, an apartment research firm. Overall, U.S. property managers and Tampa Bay property managers expect to raise rents – possibly by as much as eight percent next year – as demand rises and vacancies fall, an October survey by property rental website Rent.com found.
The survey found 68 percent of the property managers expect rents will increase next year, while around 88 percent said they raised rents over the previous 12 months. The median asking rent in the U.S. rose by 6.2 percent from $756 a month in the second quarter of 2014 to $803 in the second quarter of this year, data from the U.S. Census Bureau show.
The primary reasons cited for the latest rises were increasing demand and low inventory. Vacancy rates for rental housing nationally dropped to a 20-year low of 6.8 percent in the second quarter, down from 7.5 percent in the year-earlier period, census data show. Rents and occupancies are currently hovering at historic highs as supply isn’t keeping up with demand.
Despite rising rental rates many renters may be looking to buy a Tampa Bay home, but they’re not buying because they are faced with rising home prices and rising mortgage interest rates. The number of single-family rental homes rose thirty-five percent since 2006, to 15.1 million from 11.2 million, according to John Burns Real Estate Consulting. Roughly 3.9 million owner-occupied homes became rentals in that time. More renters say they are making changes to spending or plans due to those higher rents. Just over half of those surveyed who have seen a rent increase in the past year say they are living payday to payday.
If you’re looking for a more affordable home for rent in Tampa or if you need Tampa Bay property management services, contact the Simply Property Management – Paielli Realty, Inc. team today. We provide a wide array of specialized property services in Tampa, Florida as well as the surrounding areas, and our associates will provide personal service to help you achieve your goals and meet your housing needs.
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