10 Cities with Rising Rents a Positive Sign

10 Cities with Rising Rents a Positive Sign

Posted on 17. Oct, 2011 by in News

Although current financial news may not always present the most pleasant outlook, the big picture on the economy is more encouraging – even as to the housing market. Over the course of the recent recession housing prices fell along with rents nationwide. Many young adults found themselves moving back home to stave off the high housing costs. However, today many of these people are finding jobs and now have the opportunity to move out. This increasing trend is steadily sending the high vacancy rates back down toward pre-recession levels, with the consequent effect of increasing rental rates.

The real estate market research firm Reis, Inc. estimates that there will be a 3.6% average rise in rents in 2011. In cities such as Washington D.C. and New York, rent could see as much as a 10% increase. Although at first glance this increased rental cost may be taken as troublesome news for tenants, it signals that more people can afford the expense of housing cost again. Where there are higher rental rates there will also be people willing to justify home ownership and mortgage payments, given the increased monthly check to the landlord. In short, rising rents may spur an increase in new and used home sales. A rebound in the real estate market is, of course, a key component of long-term, sustained economic recovery. The Reis research group compiled a list of some notable cities where rent increases may be most pronounced in 2011.

San Jose, Calif.
Average Rent: 1,635
Annual Increase: 6.8%
Unemployment rate: 10.6%

New York
Average Rent: 3,038
Annual Increase: 6%
Unemployment Rate: 8.4%

District of Columbia
Average rent: $1,521
Annual rent increase: 5.4%
Unemployment rate: 5.8%

Source: http://realestate.msn.com/10-cities-where-rents-are-rising-the-most#1

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