Experts Predict Rents Will Continue to Rise into 2016
Rent skyrocketed last year as predicted by most experts. However, most analysts are surprised that rents have yet to slow down and looks like it will continue to rise well into 2016. September marks the 8th straight month that rent growth is at 5% or higher and vacancies were low at 93.5% occupancy nationwide.
CNBC recently reported that 35% of new home starts in 2015 were multi-unit constructions. That’s the highest share since 1973.
However, although constructions have been on the rise to meet demand, most still believe the demand is still greater than the supply.
According to economist Sam Chandan, the president of Chandan Economics and adjunct professor at the Wharton School at the University of Pennsylvania, “new inventory coming to market is weighted to the high end. It’s urban, class A with a rich set of amenities targeting the coveted college educated millennials. Overall, we still have an affordability crisis in the United States with rents rising faster than incomes for the fourth-consecutive year.