The year is nearly over and renters and landlords alike are anxiously wondering what the rental market has in store for 2013. The struggling economy coupled with an equally fragile housing market has strengthened the rental market for the past few years, but this year the housing market is slowly starting to recover. So what does this mean? Here are four clear signs that the rental market will remain in favor of landlords and Chandler property managers in 2013.
Job Market Increase
Experts believe the job market and unemployment rates correlate directly with the real estate market. The unemployment rate has recently dropped to 7.8% from the previous 9% and the Labor Department announced that the Initial Jobless Claims report has fallen to its lowest in four years as of October 2012. This increase has hopefuls keeping an eye out for a newly revamped economy and in turn, stronger real estate and rental growth.
Increased Consumer Spending
When consumers start spending more, they start to have more faith in the economy and hence tentatively begin driving the housing market back to its former glory. The most recent report shows the Consumer Sentiment is at its highest in five years, 83.1% as compared to 57.5% last year. This statistical measurement and economic indicator of overall health of the economy is determined by consumer opinion, and has become a light in the usually dark tunnel of the real estate market. Once consumers are fueling the economy and feeling more confident to make real estate investments, then landlords and property managers in Chandler AZ can continue to lead the landlords market.
Foreclosure activity has finally declined to its lowest in five years, and will hopefully spurn more real estate investments. Alternatively, homeowners who are underwater in their mortgages will begin the short sale process in 2013 and in turn, will be seeking out Chandler property management companies and landlords for their next rental property.
Apartment Vacancies Decreasing
The increasing rental rates suggest multifamily housing such as apartments are poised to dominate the 2013 rental market, according to the National Association of Realtors. While rental rates are on the rise with a 4% increase predicted for 2013, vacancies are dropping with a prediction of a 4.5% decline next year. Rates below 5% are usually good indicators of a landlord's market, putting higher priced rental properties in high demand and giving Chandler property managers the upper hand.
Any way you slice it, the numbers don't lie. Looks like 2013 will be a landlord's market for now.