BIG RENTS HITTING LITTLE CITIES
Do you live in a small town? Don’t be surprised if you start seeing more dollar signs on those rental listings this year. Smaller cities are beginning to see higher rental demandand rising rents. Even though 2015 employment rates are improving, the home ownership rate is still falling behind that of renters.
A huge factor that affects the increasing rental demand is consumers that are renting longer because rents are so high and incomes are so low that they can’t afford to buy a home in Tucson. These numbers tend to hit themillennials the hardest and keep them in their Tucson property management rental for longer periods of time. Higher prices keep renters in place, even when it may be cheaper in the end to own than to rent. Many renters find the credit process and saving up for a down payment to be too difficult.
"Rental appreciation has been a freight train these past few years, chugging along without any appreciable slowdown. Since 2000, rents have grown roughly twice as fast as wages, and you don't have to be an economist to understand why that is hugely problematic," said Zillow's chief economist, Stan Humphries.
The national apartment market saw its strongest January of the post-recession period, with rents rising 4.9 percent annually and occupancy at 94.6 percent, according to Axiometrics, an apartment research firm. "Some of the smaller markets have seen less supply than some of the larger markets have during this apartment cycle," said Stephanie McCleskey of Axiometrics. "High occupancy rates coupled with steady job growth and a limited amount of new supply have given property owners the pricing power to continue to push rents."
And while the higher rents that are usually seen in larger metro cities are creeping their way into smaller towns, the market is also seeing a lack of Tucson homes for sale. This lower home inventory is keeping potential first-time buyers competing for higher priced homes.
If you’re looking for an affordable rental from a qualityTucson property manager, please contact the Simply Property Management- Paielli Realty, Inc. Team today. No matter what you’re looking for, our associates provide personal service to help you achieve your housing needs and real estate goals. – Greg