APARTMENT RENTS UP UP UP
Well it is happening. Just as it does nearly every time. When the housing market slumps and money for housing purchases is scarce, the demand for multi-family rental units increases. With that increase in demand the rents rise and vacancy rates fall.
People who would like to purchase homes simply can’t get qualified. There are a great deal of foreclosures to be purchased but a large percentage of would be buyers simply can’t get the money to make the purchase. They have very few alternatives such as obtain seller financing, tap mom, dad uncle… or RENT.
Supply becomes scarce because of this increased demand and occupancy levels rise. In the multi-family industry, when occupancies to 95% rents are to low. In many areas of the country 15% vacancies have been reduced to levels below the 5% mark.
There is now an increase in permits and building of multi-family units in many areas. Now is the time to get in. A year form now will be a great time for cash flow and 9 to 12 months from then would begin the time to sell or crank cash for investments of another venue.
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