ForLease Atlanta always keeps an eye on the real estate market for our clients, to keep them informed about the latest trends. In the beginnning of October, Rent.com recently released it’s seventh annual Property Owner and Manager Market Report for 2015 that shares nationwide trends about the rental market, so we would like to share a brief summary of the findings.
Rent.com’s report has found that 2015 rental vacancies are at a steady decrease. This makes sense when factoring in the numbers from the U.S. Census, which showed national vacancy rates in the second quarter of 2015 were 6.8% for rental housing, down nearly a full percentage point (from 7.5%) from the same time in 2014. This means that vacancy rates are the lowest they have been in about 20 years!
Side Effect of Low Vacancies
Since the rental market is much more saturated and essentially ‘in demand,’ it is leaving less room for renters to negotiate terms and is driving prices upward. However, even though this is the case around the country, the rent.com report shows that 56% of property managers claim they have not become more selective of potential renters. What does matter to them? Money. The unfortunate news is that: “…53% of property managers said that they were more likely to bring in a new tenant at a higher rate, than negotiate and renew a lease with a current tenant that they already know.”
2016 Market Projections
Given the current trend, it is expected that rental rates will only continue to rise in 2016. Specifically, rates are expected to rise an average of 8% across the rental market next year. This rate is likely to keep rising as it has been noted by property managers that an increase of millennial renters and former homeowners have entered the already crowded rental market. 43% of these property managers also report they are seeing more and more applicants unable to meet income requirements of properties on their own. Why? Much of this has to do with the general state of the country right now; limited job availability, lower incomes, high students loans, high debt, etc.
Although this rent.com report may seem like a big negative for future renters, it is just another reason why having a ForLease Atlanta agent on your side is such a good idea! Our highly skilled agents can help you navigate the Atlanta’s rental market and be your Atlanta condo or apartment locator! Together we will find your perfect place to call home.
Interested? Please contact ForLease Atlanta today for more information by calling 404-228-0913.