Hotter Demand for Rentals Means Higher Cost
October 8, 2018
The idea of purchasing a home is stressful, but with the housing market going up, so is the competition. Prices are higher and it's causing more and more people to resort to renting rather than buying. The more people that are renting, the higher the rental market. Now that rental prices are so high, it's getting harder for people to save up enough money to actually buy a home.
For the past few years, the rental market was getting bigger because builders were specifically building properties to rent. However, since there was a shortage in homes for sale, the rental market has been booming and landlords are raising their prices. In the third quarter of 2018, rental prices rose 2.9% compared to last year.
Amongst the list of cities that are seeing the highest increase in rental prices, three of those cities are in florida -- Orlando, Jacksonville and Tampa.
You'll notice that there's a lot of apartment complexes being built all over Florida. That's because currently, the occupancy rate in apartments is almost 96%. It's so hard to find a decent rental for a decent price and it looks like that won't be changing anytime soon. Most of the new construction apartment complexes are considered luxury, so the price to live in those will just be more than all of the others.
No matter where you're looking, it's going to be tough to find a home for rent that's actually affordable.