Landlords are seeing a trend that is surprising if not troubling for many people, the problem is people are just not renting as much and many are feeling that the rental market is down. There are several reasons for this.
Unemployment Rate and Economy
With the unemployment rate soaring and the economy diving, people are just not as interested in moving and they’re happy to stay put and try to eek out a living in a comfortable environment.
Where the Jobs Are
The once boom cities are becoming too expensive for many people and some of these places have been hit pretty hard by company closings so people are moving to find work or better economic markets so some landlords are feeling this pain.
Bad Housing Market
The U.S. is really seeing a dip in the value of homes on the market, but for renters this is an excellent time to buy. So if they’re secure in their jobs and income, why not take advantage of what basically amounts to a sale on houses across the nation.
More Bad Housing
Another effect of the bad housing market is that people are stuck with homes they can’t sell while they’ve already moved into another home, rather than letting these homes sit empty they are turning into accidental landlords and renters can get great deals on these homes.