Why the Cost of Rent Is Soaring презентация

If it seems like your monthly rent check is getting bigger at a faster rate each year, it’s not your imagination.

Слайд 1Why the Cost of Rent Is Soaring


Слайд 2If it seems like your monthly rent check is getting bigger

at a faster rate each year, it’s not your imagination.

Слайд 3According to new data, the average cost to rent an apartment

is growing at nearly three times the rate of inflation!

Слайд 5Why is this happening?


Слайд 6Since the financial crisis, the percent of Americans who own their

homes has fallen dramatically.

Слайд 7In 2004, 69% of households owned the home they lived in.

But by 2014, this had fallen to 64%.

Слайд 9This implies that, over the past decade, an estimated 5.9 million

households that would have otherwise owned a home have chosen to rent instead.

Слайд 10To make up for this, builders of multifamily housing units have

tried to keep up with the increased demand.

Слайд 11This is why multifamily building starts are at a historic high.



Слайд 13But because builders haven’t been able to increase supply fast enough,

apartment vacancy rates have dropped to the lowest point in more than a decade.

Слайд 14In 2009, 8% of apartment units were vacant. Today, only 4.2%

are empty.

Слайд 16The net result is that landlords have little incentive to negotiate

on price.

Слайд 17In fact, just the opposite is true: They have every incentive

to increase rent.

Слайд 18And that is exactly what they’ve been doing.


Слайд 19In 2007, the average rent across the country was just over

$1,000. Today, it’s almost $1,200. That’s
a nearly 20% increase!

Слайд 21The good news is that this trend may be coming to

an end.

Слайд 22According to Nick Timiraos from The Wall Street Journal: “It could

get a touch harder in 2015 and 2016 for landlords to keep raising rents as aggressively.”

Слайд 23Let’s hope he’s right!


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