Results for: Rental Market

Investors are pulling back from the single-family rental market due to narrowing profit margins, driven by rising interest rates and modest rent growth. The 10-year Treasury yield, currently at 4.0%, is outcompeting typical 4.9% cap rates on rental properties. Experts anticipate a return of investors only when Treasury yields fall below 3.0% or cap rates climb above 6.0%, requiring significant price drops. Southeast markets, particularly in Alabama, Georgia, and South Carolina, offer more attractive unlevered returns of 7-8% due to lower insurance and property tax rates.

Suzanne Hayes faced a daunting housing situation when she received a 30-day notice to vacate her rental. With limited options due to rising costs and stringent rental market requirements, she found an unexpected solution – living in a hotel. Hayes’ experience highlights the growing housing affordability crisis in the US, where millions are unable to afford homeownership. While the Federal Reserve’s recent interest rate cut may offer some relief, experts emphasize the need for more significant action to tackle the chronic housing shortage.

The UK rental market is more competitive than ever, with multiple applicants vying for each available property. This article offers expert advice from letting agents, providing valuable insights into how to stand out from the competition and secure your dream home, from being proactive to demonstrating genuine interest and understanding the financial aspects of the market.

Goldman Sachs analyst Julien Blouin has initiated coverage on several multifamily and single-family rental REITs, forecasting strong growth for the latter. Blouin expects single-family REITs like American Homes 4 Rent (AMH) and Invitation Homes (INVH) to experience significant same-store revenue growth in 2025 and 2026 due to favorable demographics, home affordability, and easing rental supply pressures. However, Blouin is more cautious on urban-focused multifamily REITs, anticipating a supply challenge in some markets.

Average monthly rent outside London has hit a record high of £1,316, up 7% from a year ago. The study by Rightmove reveals a growing rental crisis, with demand outpacing supply and pushing prices significantly higher than pre-pandemic levels. The report comes just days before the General Election, with experts calling for government intervention to address the housing shortage and stabilize rents.

Jaco, a picturesque town nestled on Costa Rica’s Pacific coast, is undergoing a remarkable transformation. The real estate sector is experiencing a surge in residential developments, reshaping the rental market landscape and creating new opportunities and challenges for stakeholders. Fueled by increasing demand and construction projects dotting the skyline, the region is witnessing a resurgence in residential properties, reminiscent of the boom period in the mid-2000s. This influx of new rental inventory is expected to impact pricing dynamics, competition, and the overall rental market landscape in Jaco. As property owners navigate the intensified competition, they are enhancing their offerings, investing in renovations, and exploring alternative rental strategies to attract and retain tenants in a more competitive market.

Walton-on-Thames, a town in Surrey, has experienced an alarming 34.6% increase in rental prices, surpassing popular London commuter destinations. The high demand for housing in the area has led to a surge in rental costs, with the average asking rent reaching £2,048 in 2024, a significant increase from £1,521 in 2023. Despite the elevated prices, there are signs of tenant affordability being stretched, as reductions in rental prices have reached a five-year high for this time of year. Nevertheless, the demand for rental properties remains high, with letting agents struggling to keep up.

Hamilton City Council has approved a one percent vacant unit tax (VUT), which will take effect in January 2024. The tax aims to discourage vacant properties and free up an estimated 1,000 empty units for rentals. The city will reach out to other municipalities that have implemented VUT programs, such as Toronto, Vancouver, and Ottawa, to learn from their experiences and avoid any implementation issues. While the tax is not intended to generate revenue for the city, annual updates will allow for rate changes.

A report from Anglicare Australia paints a bleak picture of the Australian rental market, revealing that the national vacancy rate has plummeted to an all-time low of 0.7 percent, while average rents are $200 per week higher than pre-pandemic levels. The report highlights the growing gap between incomes and housing affordability, with only 289 of the 45,000 homes listed being affordable for a person earning a full-time minimum wage. The report emphasizes the need for increased support for low-income earners and calls for reforms to the private rental market to address the widening affordability crisis.