Now is a great time to be in the Leasing & Property Management Business.
Our industry is seeing new growth due to positive factors affecting the already negative real estate market. We love what we do, and have been successfully leasing and managing real estate investment homes in Marin County for over 30 years! We recently received this article from our friends over at Rentbits, a company for rental property searches, that we found truly interesting and wanted to share here:
In previous years, it was embarrassing to say you rent. Today, in most cases, it is embarrassing to say you own. According to the US Census Bureau, the U.S. home ownership rate has fallen about 1.5% over the past year (from 66.9% to 65.9%). For every 1% drop in the home ownership rate, it represents approximately 1 million new renters entering the rental market.
In some cases, home ownership rates have fallen below some European countries. Italy for example, has an 84% home ownership rate. Along with Spain with a 78% home ownership rate. High unemployment rates, difficulty in getting financing, changing demographics and increased foreclosure rates are adding to the deceleration of home ownership. In 2011, there was a 4% increase in the amount of renting households compared to 2010. In the United States, home ownership is the least in states like California (56%), New York (54%), and Washington at (64%). States with the highest home ownership rates are: Michigan (75%), Mississippi (75%), South Carolina (75%), and West Virginia (79%).
Rental vacancy rates dropped to 5.6 percent in the third quarter of 2011, down from their record high of 8 percent in 2009, according to Reis, Inc. This increase in rental demand is putting upward pressure on rental prices throughout the United States. As more foreclosures and new apartment buildings enter the market, the rental rates should stabilize and reach equilibrium. Renting is the new buying and this trend doesn’t seem to be slowing down anytime soon.
**For more information about our leasing and property management services or to rent your home in Marin, please call our office at (415) 482-9988, or visit our website at www.prandiprop.com.
— Cristy Boucher, Assistant Property Manager