Housing affordability is a real thing. A very real thing. It’s hard to buy a home today…..so you rent. Right? Well, markets do what markets do and the rental marketing is rising…with no end currently in sight.
The Wall Street Journal reported on January 6, 2016 (article here) that US rents in 2015 rose 4.6% to $1,179 – an unbelievable 22.3% increase since 2009’s average rents of $964. Over 22%!!!
Affordability is the issue and there is no clear solution – unless real estate developers overbuild again. Let’s not hope for that to happen again. Please, no.
Then, as a landlord, I see profitability. Yes, my rents have been increasing to meet market prices, so my investments are certainly more secure – I am happier!
What are you thinking about? Affordability or profitability? I am in the profitability camp, myself.