U.S. apartment vacancies decline
Posted on Friday, January 6, 2012 at 8:49:20 AM
Apartment building vacancies fell to 5.2 percent, its lowest rate in more than a decade, according to Bloomberg. The high demand has led to landlords scaling back on freebies or incentives and increasing rent - which could drive an individual to consider residential financing.
The average rent rose to $1,009, after landlord giveaways, the source reported. This is an increase from the already record average established earlier in the first quarter of the 2011 year, at $991, according to the Wall Street Journal.
"You don't often see occupancy and rents increasing at the same time," Rich Anderson, a REIT analyst covering the multifamily sector for BMO Capital Markets, told the Wall Street Journal. "It's a great fundamental picture today."
Renters looking to escape rising costs and achieve freedom through home ownership may wish to research residential lending options. For the $1,000 they pay in rent, a person could be making mortgage payments to own their home. Home ownership can be a smart alternative that provides fiscal benefits to the owner's portfolio.
A homeowner may even choose to rent out a bedroom to pay off their mortgage.