Double-digit rent hikes are (potentially) on the way

[metta]

Home prices are still dropping in many areas of the country. I read one story that estimated that real estate would drop 10% on average over the nation ( of course, it varies by state, city, as well as area).

However, I think that it is important to be aware of that it is possible that rent will be gong up. For those that rent, it may be good to start increasing your savings so that you have a down payment on a home when they hit bottom. Getting a fixed mortgage, you will not have to concern yourself with rent increases.


Double-digit rent hikes are on the way
http://www.marketwatch.com/story/double-digit-rent-hikes-are-on-the-way-2011-01-13?siteid=nwhpf

 

[pausanias_usa]

Maybe initially, but as all the foreclosed homes are used as rentals because no one can afford them, rent prices may be driven down!

 

[SLOPPYSECONDS]

homes

wish world figure it



sorry rent up 1hour stay ma butt HAAAAAAA

 

[boxerdudeuk]

that doesn't really make sense... as property values go down - there shouldn't be an increase in rental rates. if anything, there should also be a trending down. property management companies and investment groups will be buying up properties and renting them out until values come back - increasing the inventory of available rental properties. as those properties come online and available for rent - it doesn't make sense that they'll be on the rise.

 

[Beachguyj]

Maybe initially, but as all the foreclosed homes are used as rentals because no one can afford them, rent prices may be driven down!

I've never seen rent prices go down. At least not on the low end. Where I was the landlord did not raise the rent and I was there for a little over 2 years. I recently moved in but if mine goes up next year and it's more than 3% I will be gone. I will have to downsize in price, but it means I will have to move away from the beach, but I might find a larger place or a place with a pool.

 

[boxerdudeuk]

also, further to my comment, people leaving $2,000 + per month mortgages probably won't be looking for $700 a month rentals... they'll be renting homes similar to the ones they're currently upside down in.

 

[Beachguyj]

There are a lot of apartments for rent in my area and one thing they will not do is lower the rent. They are dumb and would rather lose several months of renting than lower the rent $25 or $50.

I tired to bargain with my landlord to get a deal through the super. She only has 4 units. She wouldn't budge and I liked the place so I took it for the asking price. By the time I moved in she was down to me and one other tenant. I think that tenant is gone because I see vacant under his name in the mailbox. She had two new ones, but one or both might only be seasonal.