A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
How long will the increase in rents last?
It’s always mystifying when you try and look for reasons why
things happen, when you think the opposite should be happening. I am talking
about the increase in rents in the Country. With interests rates to buy a home
so low, you would think that people would be knocking down the doors of the
banks to get a home loan, but in reality, people are knocking down the doors of Property
Management Companies to trying to find a home to rent.
Just look at the increase in rents:
People are spending a larger amount of their income on
rents. A renter making a median income in the U.S. spent 30.2 percent of their
income on a median priced apartment in the second quarter, compared to 29.5
percent a year earlier. The long-term average, from 1985 to 1999, was 24.4
Rental affordability worsened from a year earlier in 28 of
the 35 largest metropolitan areas covered by Zillow. Rents were least affordable
in Los Angeles, where residents devoted 49 percent of monthly income to rent.
The share in San Francisco was 47 percent, 45 percent in Miami, and 41 percent
in the New York metro area
In my business of Property Management in Orange County
California, I have to ask, With the cost of rents increasing and the
mortgage rates still very low, when will
the renters turn into buyers? And why have they not taken advantage of these
low interest rates to buy a home instead of renting? I have written about this
many times and The instability of the economy is the number one reason people
give me for not buying.
With all the involvement of the Federal Reserve in keeping
interest rates low, and with the unemployment rates coming down, many people
are working part time jobs or jobs that pay low wages, so people are still not
confident in their future incomes and they are more comfortable renting even
though it would be to their benefit to buy.
When will this change, only time
will tell, but for the buyers out there who are in a good position to buy, they
should take advantage of the low interest rates now, because there will be a
time when rates start to move up and many people will look back and wonder why
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County