Slowdown in Rental Increases
Average rents for the U.S. are increasing by about 1.7 percent for the year. That’s a bit of a slowdown compared to previous years, and offers some relief to tenants who have really taken a beating on rental price increases. There are certain areas in the country that are still going up dramatically. The market in the Pacific Northwest, such as Portland and Seattle, are seeing rents that climb higher than the national average. They still aren’t as aggressive as they have been, however.
Larger Pool of Renters
The average rent across the U.S. is about $1,405 per month. That has come down just a little bit, but not much. There are lots of people renting properties. The number of renters continues to increase. That creates less inventory and fewer properties to rent. So, rent prices can continue to climb. The tenant quality is also impressive. For example, people are selling homes in California and moving to Portland to see if they like the area. That gives them the opportunity to rent for a while – and see if they can tolerate the rainy weather – before they buy. We are also seeing a lot of people who would prefer to rent rather than buy. The American Dream has changed. Renters are happy to call and complain when something goes wrong with a property rather than having to deal with it themselves.
Overall, we do see some relief for renters and tenants. However, the rental market is looking strong for property owners and investors. There are good properties available and a lot of well-qualified tenants looking for homes.
We wish all our owners and investors luck in 2017, and if you have any questions about property management in Portland or property management in Sarasota / Bradenton, please contact us at PropM, Inc.
