Rental market is underpressure due to the weak housing market?
I think some property owners will have to reduce their rent in the near future if they want to survive from the current property slump. I think rental market specially will come down in countries like USA, UK, Canada, Dubai, New Zealand, and Australia sooner than later.
More supply in the market and inventory are building up
House prices and sales are falling from UK to Australia.
More mortgagee sales are coming into market through out the world.
Some are trying to sell their bigger houses to go for smaller houses.
Plenty of online real estate brokers have listed houses in their websites.
Real estates agents are forcefully maintain current rent rate. This trend will change soon.
Increase in unemployment due to closer of work places and plants.
Migration to other countries
People are willing to live together rather than separately due to higher rental cost. Purchasing power has come down.
Finding occupants are becoming more and more difficult now
Any other thoughts. Thank
Answers
3127 points
EthanR answered 3 months ago …
MNSL, in my area the rents are stable due to various opposing forces. Many people have lost their homes to foreclosure, can not buy another home for years, and are only able to rent now. That has driven up demand. Also, with home prices declining, many people are sitting on the sidelines, renting for now and awaiting price stabilization. The third factor in favor of higher rents is that increases in mortgage FICO requirements and down payments are keeping many people from being able to buy a home these days.
On the other hand, many home owners who could not sell their home and had to move, were forced to rent their homes. That has increased supply. That is the only reason that prices for rents have not gone up a lot.
As a landlord, I rarely have trouble finding a tenant. That is because I always keep my properties in good shape, and having owned them for several years, my costs are lower than newer owners and I can keep my rental prices competitive. Many of the people who couldn't sell their homes paid so much for them near the peak of the market, that they have to ask very high prices on their rents to avoid a negative cash flow each month.
So while I can only speak for my area, I have to disagree with your premise somewhat, at least at the present time.
951 points
Grudun answered 3 months ago …
In my area(SF Bay Area) I have to agree with EthanR. Quality apartments and retail homes are raising their rents because of the large number of people who have to find a rental. Also there is an increasing number of vacant homes that are on the market resulting in fewer units in use(either as owner occupied or rentals) because the banks are in the process of forclosing or have already forclosed and are pricing the properties above the price they can get in this market especially as the housing market enters the slow season.
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