While the real estate market appears poised for another great year, the rental market across the country could use some relief. We noted in a few of our prior posts that the potential overproduction of luxury residences could taper a robust market, but for those who are not yet prepared to enter homeownership (for one reason or another) must settle for renting.
But the need to rent should not be hindrance to good housing. However, it appears that there may be some relief for those who have trouble finding affordable places to rent. A recent Christian Science Monitor report indicates that an increase in the number of rental units should stabilize rent inflation. This forecast comes as 75,000 rental units were completed last quarter, and another 315,000 will be completed over the next year.
Given that the number of U.S. households that are renters reached a percentage not seen in nearly 50 years (37 percent) and occupancy rates have reached a near record peak (96.2 percent), it is understandable that some potential renters are having trouble finding affordable places to live; especially in New York City.
A number of factors contribute to this conundrum, including the number of millenials who have difficulty qualifying for mortgages because of low credit scores due largely because of student loan obligations, and people waiting longer to buy homes because they have to save so much more money for down payments.
This places an added importance for those looking housing to seek the advice of a skilled real estate attorney.