Why are Apartment Prices so High
You find that around 43.38 million households in the United States were renters in 2017. Because of that, the cost of home buying and ownership rose by 14% that year. But this is something that has been increasing every year, and we are wondering what might be leading to this. Here are some of the things that lead to an increase in apartment prices.
The first one is high mortgage rates. It is essential to note that the high mortgage rates are driving more people to delay their home purchases. This is because fewer people are buying and the larger percentage are turning to rentals. You find that this higher competition means more prospective tenants for rental property owners. Because of that they can increase their rental rates without then the fear of losing prospective clients.
Apart from that, increasing high home prices. I can say that higher home prices are the major cause of this increase. It is essential to note that because of that fewer people can buy homes, and this will mean that many people will rent. This brings us back to increased competition and rates for rental properties.
The next cause is fewer homes for sale. One thing that you need to know is that in December 2016 the monthly US housing supply was at 7.4 rations to houses sold that month which had decreased to 6.0 by March 2019. Because of that, there are fewer homes to sell, making it hard for home buyers to find their dream homes. This way we will have fewer housing options leading to reduced buyers, in turn, makes more people stick to renting.
The next reason is strengthening the economy. It is essential to note that the US see a stronger economy, which is partly caused by a decline in unemployment. But on the other hand, it is a warning as the real estate price are increasing. You find that a stronger economy is always followed by rent inflation because it shows that people can spend more.
It is also as a result of smart technology and green features in rental properties. It is always the same thing you rent a room or an entire house; a higher rate may be due to property’s great ammonites. Here you will have to look out for amenities such as energy-efficient home technology which can include appliance, lighting, HVAC system, programmable thermostat, and many others. With that said, you should be sure to consider such technologies when choosing an apartment. This is because they will help in boosting the quality of living as this means increased comfort for you and your family.