The year 2016 posed to be a good year to become a landlord that is because in the last six years, rental fees have been constantly on the rise.
During the previous year, apartment rents skyrocketed to 4.6 percent. This growth has been the largest since the Great Recession hits the state.
Here are other reasons why this year would be a great time to become a landlord.
Apartment rent average is ever increasing
Realtor Mag reveals that from $1,125 average last year, apartment rents have increased to nearly $1,180 according to Reis, a commercial real estate data analyst, latest report.
No signs of diminishing
During the fourth quarter of 2015, the apartment market has seen an incredible growth. "The strongest we've ever seen," according to analytics senior vice president, Jay Denton of Axiometrics Inc. on Interest Website.
Axiometrics Inc. is an apartment research company which also releases a report that shows a 4.7 percent increase in rents in the fourth quarter of 2015 compared to the same quarter of the previous year.
A 2.3 to 4 percent increase in the last six years remains powerful
Apartment rents have increased from 2.3 percent in 2010 to 4 percent in 2013.
Strong rental demand for 2016
It is expected that the rental demand will be stronger this year which means there would also be higher rents. According to Reis, in the past 15 years, apartment rents have increased by 2.7 percent yearly.
If the rents get higher every year, it will be difficult for young generation to save more to purchase a house of their own. This means they will have to rent longer. First time buyers are still very low in the past three decades according to the report from the National Associations of Realtors.
People in their 30s are choosing to rent more than buy. This is also due to financial flexibility as well as the proximity of apartment to bars and restaurants.