Rising Rates for Tenancy

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Homebuyers have undoubtedly been affected by the housing shortage, which has pushed more people into the rental market along with the typical number of renters. However, rental prices are not much tamer than the record setting highs to purchase a home.

From a Realtor.com study released on December 16, 2021, they found that, “November marks the fifth month in a row where rent growth has reached double digits (19.7% year-to-year).” The median rent hit $1,771 a month which is the highest recorded by this site. This was measured in the nation’s large metros, but our smaller city in Southwest Colorado is seeing similar trends. All unit sizes from studios, one bedroom, two bedrooms plus are at record highs with even more competition for available rentals.

Millennials, 4.8 million reaching their 30s this year, have put more stress on the unprepared real estate market. Stemming back to the 2007-2009 Recession, the lack of homes built stunted the inventory for home buyers and renters alike. The manager of economic research at Realtor.com, George Ratiu, says, “The only way to solve the problem is by more construction.” We are seeing an increase in the building industry but with the delays brought on by COVID and unavailability of some materials, it makes for even more hiccups and price increases.

With the real estate market setting records seemingly monthly, please don’t hesitate to reach out with any questions.

Read Realtor.com’s articles here: https://www.realtor.com/research/november-2021-rent/