Residential rental market is booming
A 'For Rent' sign hangs in a vacant store window in the Wicker Park neighborhood of Chicago, Ill. The rental market is booming right now as the economy is slightly improving.
Adriene Hill: Inflation is chewing away at the money we make. We got consumer income and spending data yesterday showing a small increase in paychecks but gas and rent ate it up. The rental market is booming. Folks who might have bought before the housing bubble are scared; some wannabe buyers are unable to get loans. And people who are getting back to work as the economy improves -- they want to move out of their parent's basement.
For more we go to Faith Hope Consolo. She's with Prudential Douglas Elliman. Good morning.
Faith Hope Consolo: Good morning.
Hill: So where’s the rental market going from here?
Consolo: It’s been going up; it’s been a very buoyant market. I suspect that we’re going to be meeting demand for new space -- new residential development -- in the next quarter as well.
Hill: Do you think the demand for rentals is going to keep growing?
Consolo: Oh yes, we’ve seen that as the pattern in the last five years, who will not purchase or who will not be able to purchase and the rental market meets that. And for the students that graduate; people that relocate from one city to another to another corporately until they’re able to purchase -- so that’s a two or three year demand, ongoing.
Hill: So who’s out there right now thinking how to help or house these renters right now?
Consolo: The developers have been watching this, say in Miami, Washington D.C., Dallas. They’ve already geared up for new construction. And I think they’re just moving forward. I think they were at a standstill but there is money for construction out there and some of the projects that stopped have completely re-started, which means that we should be able to fill a lot of that demand by year end.
Hill: Faith Hope Consolo, thanks.
Consolo: My pleasure.