By John Burns

will rising rental rates by landlords cause renters to move and buy homes

John Burns

Rents in the highest-quality apartments rose 4.4% last year, including an 8.0% jump in one West Coast portfolio.

With a very high occupancy level (95.8%) and job growth exceeding construction levels in almost every major market in the country, landlords will continue to raise rents throughout the remainder of the year.

More renters will choose to become homeowners soon

While the number of tenants leaving to buy homes remains low—only 14.7% of renters moving versus a norm of 17% since 2002—we believe more tenants will choose to become homeowners soon.

The following table and chart come from a report we prepare that compiles the results of the publicly traded apartment REITS.

We find this to be the most pertinent rental market data for home sales because these represent hundreds of thousands of high-income renters.

Will rising rents by landlords cause more renters to move

Courtesy of John Burns Real Estate Consulting.

 

 

 

apartment move outs to purchase a home by renters

 

 

 

 

 

 

 

 

 

 

If you have any questions you can contact John Burns here.

Read more about John Burns consulting here.

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