Yet another report has coming out indicating that rental prices are going to increase. Learn more about what the Harvard Study says about the Rental Bubble.
According to the Harvard Joint Center for Housing Studies’ latest report on America’s rental housing, "Rental markets are now tightening, with vacancy rates falling and rents climbing". Here are some additional highlights from the article:
- Apartment affordability is expected to deteriorate as the economy improves and vacancy rates drop.
- "A variety of rental market indicators suggest that the worst repercussions from the recession may be over."
- There is an excess supply of rental housing at present.
- "Given the long lead times needed to develop new multifamily housing, a sharp increase in demand could quickly reduce vacancy rates and put upward pressure on rents."
In addition to this study, Peggy Alford, president of Rent.com was quoted in a Chicago Tribune Article (U.S. Set to be High-Rent Nation, March 16, 2011) as saying, "The demand for rental housing has already started to increase. Young people are starting to get rid of their roommates and move out of their parents' basements."
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