Rent in­creases are fi­nally slow­ing

The Palm Beach Post - Residences - - Front Page -

An in­creas­ing sup­ply of rental units is slow­ing the rise in rents. The an­nual rent ap­pre­ci­a­tion has slowed for the past three con­sec­u­tive months as more apart­ments be­come avail­able.

Rents ap­pre­ci­ated 4.5 per­cent, down from 5.3 per­cent in Septem­ber, ac­cord­ing to a study and re­port from Zil­low.

“Newly built apart­ment build­ings are fi­nally open­ing for new res­i­dents and slow­ing the rate of rental ap­pre­ci­a­tion across the coun­try, but rents are still ris­ing much faster than the his­tor­i­cal norm and con­tinue to rise faster than in­comes,” ac­cord­ing to the re­port.

“Na­tion­ally, rents grew at 4.5 per­cent an­nu­ally in Oc­to­ber, down from 5.3 per­cent in Septem­ber and down from a high of 6.6 per­cent in July. Sin­gle­fam­ily rents are ris­ing faster than mul­ti­fam­ily rents, at 4.5 com­pared to 3.9 per­cent.

“Mul­ti­fam­ily hous­ing starts have been in­creas­ing since late 2009, and as units be­come avail­able, the pace of rental ap­pre­ci­a­tion is slow­ing. Lack of in­ven­tory has been a lead­ing cause of the on­go­ing rental af­ford­abil­ity cri­sis, es­pe­cially in fast-grow­ing mar­kets.

“Even the hottest rental mar­kets, which have seen dou­ble-digit rent ap­pre­ci­a­tion for the past five months, are grow­ing at a slower pace al­though rents are still ris­ing there more than twice as fast as the na­tional av­er­age.” Hol­i­day home-sell­ing

Some bro­kers and sell­ers have dis­cov­ered that the hol­i­days are ex­cep­tion­ally good times to pro­mote and sell a home. This is the time when most peo­ple are busy with gift-buy­ing and other fes­tiv­i­ties — ex­cept those who are really se­ri­ous about find­ing and pur­chas­ing a home.

As a per­sonal note, back in the years when I was work­ing as a bro­ker, I had a very sur­pris­ing ex­pe­ri­ence.

I was asked to show a listed property to a fam­ily on Thanks­giv­ing Day. I thought th­ese folks were prob­a­bly look­ing for some­thing to do on a lazy hol­i­day. I not only made a sale on that day, but the home was also the most ex­pen­sive property I ever sold.

Jim Woodard

Open House

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