Property owners have been able to benefit from tight rental markets and rising rents for the last several years. The COVID pandemic caused tremendous increases in rents in places like South Florida and Texas as people fled the density of the Northeast and restrictions in California. No one could have predicted the tremendous impact that COVID would have on the housing market. But now the rental market in the US is in flux. BOOST YOUR NOI IN A TOUGHER HOUSING CLIMATE OF RISING UTILITY COSTS AND SOFTENING RENTS
STATE OF THE RENTAL INDUSTRY The number of people paying 40% of their income to rent is the highest ever. The recommended proportion for financial health is no more than 25 to 30% of income to rent. It’s understandable that a market correction was coming, and it appears to be here. In the face of rising rental prices, more states, including hot spots like Florida and Nevada, are discussing rent control measures. Places like Pasadena, California, recently passed a controversial rent control measure, the fallout of which is yet to be seen. Meanwhile, October 2022 saw the third largest drop in rental market prices since 2010. Housing providers and residents alike are being squeezed by inflation that, while slowing, is still much higher than we’ve seen in recent years, causing people to stretch every paycheck further.
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