Sunday, November 6, 2011

Notable Rental Trends: Multi-Family 2011

Chicago Property Management

There is a recent article from DSNews.com regarding the multi-family rental sector. They bring up several interesting points on the overall rental market trend. Below you can read a few of the more interesting points they've made.

1. There has been a reversal in home-ownership trends.
    As this rate falls, there is a direct increase in the demand for rental properties. As a result, vacancies in apartment buildings have declined significantly.

2. Vacancy rates among managed rental buildings have declined.
   In fact, they're at their lowest rates since 2007.

3. Freddie Mac Speaks
    The Chief Economist, Frank Nothaft, said, "The improvement in the economics of apartment management has prompted an increase in structure values, property sales and new construction for larger buildings". 

4. The Under 30 Demographic
   There is a sharp decline in home-ownership in owners who are under 30.

5. Price of Rentals has increased.
   Since the demand of rental space is growing, so is the asking price for monthly fees. It's the first  rise since the recessionary period of 2008 to 2009.


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