Rental Market Growing
Moody’s Analytics says in HousingWire stagnant income growth and lack of adequate down payment is driving rental demand higher, with rents increasing five percent in the larger metropolitan markets, and climbing. Multifamily properties of five or more units saw vacancies fall from 12.5 percent at the start of 2010 to below 10.5 percent trough 2011. Multifamily construction starts averaged 221,000 units from Feb. to April 2012, compared to 67,000 units at the close of 2009. Moody’s suggests investors can convert distressed borrowers into renters, and then selling the property once appreciation occurs. “Conversions to rental units are the main way of adding to supply,” Moody’s tells MHProNews.com.
(Photo credit: Home-for-Rent)