The demand for rental property has risen dramatically across the country, causing widespread rent increases. This information comes from a recently released housing report by Harvard University. The report, which examines several aspects of the U.S. housing market, also indicated that multifamily property values are beginning to stabilize, thanks to the rental market’s sudden boost.
Because the demand for rental property is rising sharply, the value of investment-grade multifamily rental buildings are pulling back up. With the increase in value, rental properties are also seeing some hefty price increases.
“Rental market tightening has stabilized multifamily property values after a sharp drop rivaling that in the single-family market. As measured by NCREIF’s Transaction Based Apartment Price Index, prices were up 10.0 percent in the fourth quarter of 2011 from a year earlier and 34.4 percent from the 2009 low,” the report stated.
According to the report data, people under the age of 35 accounted for most of the rental households in the U.S. with most of those households consisting of a single male with incomes of less than $30,000 a year. Approximately 34 percent of renters made between $30,000 and $74,999 a year while only about 15 percent of renters made $75,000 a year or more.
To read the full report, click here: http://realtormag.realtor.org/sites/realtormag.realtor.org/files/Harvard2012.pdf
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