Rents are rising at the fastest pace in six years, according to newly released data from the Bureau of Labor Statistics this week and nationally the vacancy rate at 7.4% has dipped to it’s lowest level in 20 years.
The share of multifamily housing units – those with five units or more units – being constructed as rentals is at its highest since record-keeping began in 1974. More than 93% of units in buildings with at least two units are being constructed as rentals.
Looks like a rental boom is underway.
The annual rent inflation reached 3.5% in November, the highest growth since November 2008, and up from 3.3% in October, according to The Bureau Of Labor Statistics. At the same time consumer inflation rose only 1.3%.
The National Association of REALTORS® recently forecast that 2015 will continue to be a “landlord’s market” as rent growth continues to run higher than overall inflation. However, NAR does project that rent growth will start to cool — slightly next year: Rent growth is expected to reach 3.9% in 2015 compared with 4% this year.
Vacancy rates for rental apartments is expected to remain low for at least two more years, NAR says. The vacancy rate for rental apartments in the fourth quarter is expected to be at 4%, and inch up to 4.1% in 2015 and 4.2%in 2016. Vacancy rates under 5% often are considered by housing analysts to be a “landlord’s market” and ripe conditions for landlords to continue upping rents.
Wallingford PA Real Estate – Wallingford, PA 19086
