The Rise of National Rents
Though national rents are increasing, there is also an increase in the overall construction of apartments nationwide that are able to ease the pains of the renters. Terrazas claims that as the more higher the rates, the more likely hood that houses that a buyer has the ability to buy will be limited due to the lack of financial means to do so. Due to this trend in the market, it has led many to the renting side of things and dropped some prices down in those rents as well. With the assistance of the apartment construction investments the market ins making, the rent growth would steadily stay at a level where it won’t go too far the percentage.
NYC Rent Hikes
According to Andrew Barrocas, CEO of MNS, he says that the overall rates for the first half of 2019 will be somewhat stagnant and flat, whereas the second half will have price increases that could also lead onto 2020. He says that the reason during the times when New York was at a steady level of affordability is because of the amount of rental development it was having. There was a lack of rental development for taxes and land/construction costs escalated, creating shortages of making newer apartment buildings.
Battle of the Investors
Founder of Big State Home Buyers, Brian Spitz, he says that for many well-funded institutional buyers, they have amazing advertising budgets and most of their expenses make it hard for the average real estate investor to compete against them. It would take serious amounts of financial investing and campaigning for the investor to find accurate targets and find the best opportunities to take advantage of the housing market, which many institutional buyers have.
With rates increasing in the market, especially interest rates, many individual buyers have begun to look for ways to borrow money as a means to both buy and rent properties in the market. The borrowing cost increases while the inventory decreases and competition grows as well. This type of hybrid investor that not many would want to see.
Rana Khanjani, MBA
San Fernando Valley Iranian-American Real Estate Agent
Providing Services in English and Farsi
Address: 22020 Clarendon St. 200, Woodland Hills, CA 91367