According to a report by The Demand Institute, home prices will increase modestly during the rest of this year. Additionally, a 2.5 percent price bump is projected between now and 2014.
Though improvements in the overall economy, including consumer industries, are expected to contribute to these rises, the institute states the rental housing sector will probably be the main factor in price growth.
“In these initial years, the prime driver of recovery won’t be new home construction, but rather demand for rental properties,” said report co-author Louise Keely. “This is a remarkable change from previous recoveries.”
A return to health for the for-sale housing market could indicate a potential downslope for the rental segment in the next couple of years. However, property management companies and investors likely will see business remain high during the rest of 2012.