Remember the good ole days when it was possible to pay your rent and still have money left over to go to the movies AND get groceries? It almost sounds like a fairy tale that long ago apartment and Glendale AZ home rental prices were low and offering incentives that far exceeded the monthly rent. Specials like two months free, prorated deals, and even gift cards for signing on the dotted rental line came flooding through communities every summer like a monsoon. But over the last few of years, those perks have come to a screeching halt as they've come crashing into a rushing wave of rental increases that show no signs of slowing down. Home prices may be falling as, but as a result, surging rental demand has driven the average rent up to 4 percent higher than it was a year ago. So what gives?
Tanked Housing Market
The National Association of Realtors (NAR) predicts rents will increase another 4 percent in 2013. The rise of the renter population coincides with the housing market crash, which in turn has spurned the demand for rental properties and increased rents.
Swimming through Supply and Demand
The rise of renters exceeds the supply of Glendale AZ homes for rent, making the market hog heaven for landlords and various Arizona property managers. Somewhere along the lines, the number of available multifamily units decreased and there was a noticeable decline in the construction of apartments, condos, and houses.
“Wading” out the Market
There's no denying that because of the fragile housing market, would be home-buyers are simply renting longer; choosing instead to ride out the market rather than tread unfriendly buying waters. The same also applies to scorned homeowners who've lost their homes to short sales and foreclosures. According to Harvard's center, at least 3.9 million Americans who owned homes in 2004 are now renters. Home prices and interest rates may be a record low, but mortgages are hard to come by due to lenders more stringent lending policies. Even those who want to buy are opting instead for homes for rent in Glendale AZ until its “safe” to buy again.
The Bright Side
For many tenants, it's hard to see the bright side of what seems like staggering rental increases. But believe it or not, there are some benefits to the increasing rents. Higher rents and lowered incentives help push motivated renters into home ownership when the benefits of owning outweigh the cost of renting. In addition, increased rents also call to investors who want to make a more profitable return in the low-interest rate environment and provide a good alternative. Lastly, rising rents often indicate that the local economy is beginning to improve.
Higher rents may not be everyone's cup of tea, but it's certainly something people should get used to riding for at least for a little while longer.