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Landlords Gain, Renters Lose Ground |
| Last Update 2/14/2005 |
| Rating 5.69 |
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Landlords Gain, Renters Lose Ground
By Dan Ross
In Orlando, after two years of annual rent cuts, effective rents are on the rise as concessions for renters begin to wane. The occupancy rate, at 94.1 percent in March of this year, is expected to move up to 95.1 percent by March of 2005.
With Las Vegas already enjoying a 95.2 percent occupancy rate that's grown 2.9 points in the last year, Sin City rental housing should be nearly 96 percent full this time next year.
And in San Diego where the recession just hovered overhead and never really landed, apartment housing is already 96 percent full or more and rents are expected to rise 4.5 percent this year.
Perhaps a tad ahead of schedule, the nation's rental market is making a comeback and if you plan to rent, you are already behind the eight ball in a few markets.
In a few cities, rental concessions are all but gone and in other towns landlords see the light and are about to turn it out on renters.
The rental market recovery remains slow and spotty, but researchers are pushing up earlier forecasts that the market wouldn't be back in full swing until 2005.
"The apartment market could see a full-fledged recovery by the end of the year if the economy continues to strengthen at its current pace," said Mark Obrinsky, chief economist at the National Multi Housing Council.
Even in most markets that haven't fully turned the corner, there's no turning back.
"Demand for apartment residences is determined, in large part, by the employment picture. The modest increase in new jobs reported recently is already helping to increase occupancy rates. As more jobs are created, more people will be able to move out on their own and into apartments," Obrinsky.
The council said three out of its four key indexes reveal apartment market improvements over the last quarter.
The Market Tightness Index, which reflects changes in vacancy rates and rent increases, came in at 72, the highest level ever. A score above 50 means more respondents saw improving conditions than saw worsening conditions over the past three months.
For the fifth straight quarter the Sales Volume Index was above 50, coming in at 54. Equity investors continue to seek out apartments.
The Equity Financing Index also came in at 54, marking the eighth time in the past 9 quarters the index has been above 50. Fully 72 percent of the respondents indicated that equity financing for apartments remained unchanged from the favorable conditions prevailing three months ago.
The Debt Financing Index, however, fell to 36, the lowest figure in 9 quarters resulting from rising interest rates.
Since 1989 Dan the roommate man has helped 1000's of people find rooms,apartments or roommates. Need help? Contact him at 800-487-8050 or http://www.roommateexpress.com
Article Source: http://EzineArticles.com
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