Yahoo.com reports. During the second quarter, vacancies were at a new 10-year low and rents jumped more quickly than at any time since before the financial crisis.
The average U.S. vacancy rate was 4.7 percent, the lowest
since the last three months of 2001. Asking rental rates soared to
$1,091, the highest increase since the last three months of 2007. The
average effective rent, which excludes incentives designed to lure
tenants, rose to $1,041.
The increase in rental rates seems to be
the rule across the country, even in smaller areas such as Providence,
RI and Knoxville, TN, places you normally would not see as popular. In
fact, no area in the country saw a decline.
The uptick in prices
charged for rentals seems to be driven by an increasing number of home
seekers who do not want to or are unable to buy a home because of the
housing market crash and tight lending conditions. The lack of new
construction also contributes to the current market condition, as well
as Generation Y's preference for renting apartments in urban areas
rather than moving out to the suburbs. Generation Y generally doesn't
see home ownership as the "American Dream" as their parents or older
siblings' generations did.
Looking for an apartment in this increasingly tight rental market? An apartment locator can help you find a great place that meets all your criteria without the hassle.