Apartment Landlords Now Benefit
If you are an apartment landlord and have held onto your property through the preceding rough years, there appears to be a light at the end of the tunnel. Rising interest rates are forcing many consumers to reevaluate their ability to afford a new home. They are now choosing to move back into, or are staying in, their apartments.
REIS, a commercial real estate research firm reports that apartment vacancies have fallen to around 5.8% nationally. That’s the lowest level in nearly three years. The increase in demand is empowering many landlords to raise rents significantly for the first time in several years. Nationwide, on average, rents appear to be going up 3% with experts predicting they may grow at an annual clip of 3% to 4% in the foreseeable future.
While multi-family properties have been scare in some metro markets over the past few years, real estate investment brokerage, Marcus & Millichap believe that will soon change. They believe some markets will see an increase in competition as developers who built condos or converted apartments to condos will likely dump 25% to 40% back into the rental pool in major Florida cities, Las Vegas, Phoenix and San Diego.