Where Are Rents Going?
Today I’d like to talk about rentals. Where in the heck are rents going? They are going way out of the universe in terms of value, in terms of price.
Rents are just really, really difficult right now. Builders are really struggling to build so that they can make enough money to pay for the cost of building and the supply chain, the cost of wood, the cost of products, the increase in what it costs to employ people nowadays has just skyrocketed.
So the builders have decided that it’s more important for them to build to rent rather than build to sell. They are only doing what corporations and companies do, they are trying to make a profit and this is how they can make a profit because the rents have gone up so much across the United States over the past year. On the average rents have increased by 22%. That’s amazing.
Here in Long Beach the rents have increased, over the past year 52%. That’s a lot of money for a rental. But Long Beach isn’t the only one. It’s across the United States. Amarillo, Texas has increased by 51%. Freemont, California has gone up 43%. Oklahoma City that has gone up 42% over the past year.
You can see how rents just keep going up. So, here’s the situation. If you have the ability to continue to make your mortgage payments and you own a home please do everything you can in order to keep that mortgage going. Because, unfortunately, yes you have lots of equity and you’ll get a lot of money, but to move from there into a rental you are going to pay more than what your current mortgage is. So, it’s important to really think about whether or not you should sell your house and become a tenant or move into a rental. Especially here in California it would be a tough situation.
If you are a tenant, I understand, it’s really, really hard to buy here in Long Beach right now. Do your best. If there is any possibility of you getting into a mortgage do that because the rents are just going to continue to go up. And, it’s better to at least stay in a payment that would stay stable if you bought a home or got into a mortgage. Because rents are going to continue to go up guys. There isn’t enough housing. We still have a lack of inventory, houses are still going at premium cost.
So, my suggestion is, hang onto the one you’ve got. Don’t let it go. If you can get into a home or condo do it now.
If you have any questions or you need any additional info just give me a call, I’ll be glad to help.
Mary Ann Edwards Re/Max College Park
Lic # 01103542