Get Ready to Pay More Rent This Year

Posted on 23. Feb, 2006 by in Real Estate

apartments.jpgApparently the average rent climbed to $940 in the fourth quarter of 2005, according to real estate data firm M/PF YieldStar. And this year, it’s going to be even more expensive as rents recover from historically low levels.

“2006 should be the big price correction,” for rents, said Greg Willett, vice president of research at Carrolton, Texas-based M/PF. “Everything is really underpriced in many markets around the U.S.”

Need someone to blame for the rising rent? Try these culprits:

  1. Condo-Conversion Craze: many areas have seen an increase in the number of condos being built, causing the number of apartments to become increasingly scarce.
  2. Building Constraints = Pricy Rents: The three priciest rental markets were in some of the tightest markets with the biggest hurdles for new construction: New York City, San Francisco and Los Angeles. (To see a list of the 58 most expensive cities for renters, click here.)
  3. The Katrina Effect: areas around Katrina-damaged areas will be affected due to the increase in displaced residents

Source: MSN Real Estate

No comments.

Leave a Reply