Rents on the rise, listing prices down

According to a report by property search site HotPads.com, rent prices nationwide rose 11.6 percent in 2010, from an average of $1,181 in January to $1,319 in December.

“With the U.S. unemployment rate over 9 percent throughout 2010 (up from 4 percent in 2006), low-risk housing options became more desirable, a trend that may continue in the coming months,” the report said.

At the same time, HotPads expects to see foreclosed and longstanding for-sale properties re-enter the market as rentals, which should expand the rental supply, thereby helping ease rent prices. This represents an interesting contrast to the peak of the housing market in 2006, when rental units were being converted into for-sale condos.”

See the full story on Inman News.

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3 Responses to Rents on the rise, listing prices down

  1. Many of the renters are qualified to buy, but with the housing market being unstable many are not going to risk. buying can be a bit of an expense compared to renting where there are no such things as paying property taxes and insurance. Banks are not making it easy for buyers to purchase a homes. Banks are still trying to clean the mess that was left behind by other homeowners that were unable to pay.

    Andrew with foreclosuredeals.com

  2. Interesting article that holds true for my area as well. Hopefully we’ll see a reversal of the renting trend within the next 3-6 months…it’s a great time to buy.

  3. UKPB says:

    This is the right time to become a landlord; price is low and rent on rise – you can retrieve the invested fund very fast.

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