The nation’s rental markets have been quite hot in the post-boom housing market; did that trend continue into the third quarter?
There have been two distinct memes in the housing market since 2008, both involving the nation’s rental market. The first was a story of the comeback kid, of the rental market welcoming, with open arms, scores of consumers with foreclosed homes and poor credit ratings who could no longer afford their homes or find financing for a purchase.
The second story, though, was one of adversity, of the for-sale market returning with a vengeance in 2013 and rents falling as a result.
Now, though, the housing market is in an interesting place. Mortgage rates, after months at historic lows, have risen since May, and rising home prices have taken a significant bite out of affordability levels. Are the rental markets still waning, or are they reacting positively to those changes?
Christi Borden, an agent with Better Homes and Garden Real Estate Gary Greene in Katy, said that rents continue to increase in Houston, and with projections only anticipating further increases, homeownership remains an attractive option for consumers.
“I do see high rental rates as an incentive for buyers, especially first-time home buyers,” she said. “They are watching rents on the rise. With the projected future population growth, this trend is expected to continue. Renters should schedule appointments with a Realtor and a mortgage lender to really look at the cost of ownership versus renting.”
But how do those trends compare with the nation’s other metro markets? To find out, we consulted the latest data from Reis, and put together the infographic below: