Rent increases expected in 2006
Good Sunday to you!
We had a guest speaker at our RE/MAX office meeting this week, who is an expert on multi-family and rental housing. He shared some great stats with us, and we'd like to pass some of that knowledge on to you!
Vacancy rates in apartments have been steadily declining. It is currently at a 6% vacancy rate, and with over 6,000 units scheduled to convert to condos this year, that number is only expected to decrease further! Real Estate - like most markets - is driven by supply and demand. With such a large chunk of units disappearing from the market, there will be even greater demand for rental units. Therefore, rental rates are expected to climb this year - 30-40%! That is HUGE.
What does that mean for you? Well, if you are currently renting, now would be a fantastic time to speak with a lender and see how much home you can qualify for. If your rent is possibly increasing that much THIS YEAR, why not start building equity, rather than making your landlord rich?
If you are an investor - or are curious about becoming one - it is likely you will see cash flow this year on rental properties, which had become a rarity lately. For a while, the market was over-saturated with rentals, and landlords were forced to have negative cash flow, but knew that they would have long-term appreciation. Now, it looks like you can have BOTH.
The Phoenix market just continues to grow, as more and more businesses and people relocate here...it's still a great time to invest in a home!
For more information on becoming a homeowner, or real estate investor, please contact us at info@weareazrealestate.com!
Adam Tarr, ePro, Associate Broker
Sharon Kotula, ABR
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ