The Rental Market For Today?s Investor

Suburban sprawl in Colorado Springs, Colorado

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In a housing market that has plummeted further down with every passing quarter, there is one trend that is continuing to rise. The rental market has had capacity rates at nearly 80% according to the 2010 fall housing development statistics. The reason is because people are continuing to lose their homes, but need to live somewhere that will be suitable for their families. While the resale market is not doing so well, the rental market is booming. This is even creating a rise in rental costs because the profit margin has significantly increased due to high vacancy rates. Utility costs and maintenance fees have become lower, thus allowing property owners to make more money on their rental properties.

This is an exciting trend for investors. Purchasing a home does not mean that it is a loss or will prove to be a hardship, rather it appears as though occupancy will be right around the corner. Areas of high interest are urban and suburbs that border major cities. Areas that are not experiencing the boom would include rural, far-reaching suburbs, or suburbs bordering cities that have lost major industries.

Property management firms are indeed working at fast paces to find homes for renters, and this is what is keeping that aspect of the real estate market alive. Taking into consideration the growth of the economy in coming years, purchasing a home for rental is not going to be a wasted investment, rather one that will continue to gain equity, because many experts agree that the bottom has already been reached with the fallout of the bubble. Renting has also been a way to keep towns thriving with residents. This is especially true of areas that are known to be commuter residences to large towns that have industry. An example would be a desert town in California whose residents work in Los Angeles.

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