Rising Rents Could Aid In Recovery of Housing Market - | ArmandoMontelongo.com

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Rising Rents Can Aid In Recovery of Housing Market

The gradual increase in rents, as compiled in a new index, could help stabilize the prices for homes in the coming months.

Using data from its new Rental Intel program, which surveys between 750,000 and 1 million rental units (both single-family homes and apartments) a month, Altos Research makes a case for strength in both the buy-and-hold sector and the general housing economy.

The blog notes that more and more people in the United States are going against the conventional wisdom that owning a home is preferable to buying.

The percentage of households owning a home has dropped to 65 percent, and Altos expects the percentage to be closer to 60 coming years.

Low interest rates and rising rents encourage real estate investors to get into the buy-and-hold market, helping reduce the housing inventory.

Over the long term, rising rents will send non-investor buyers back into the market, and the historic balance between buying and renting will be restored.

Here’s a view of the Altos Research 10- and 20-city composite rental prices dating to Nov. 1. It is updated weekly:

What do you think? Is there an opportunity here? Leave us a reply below.

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