With Homes for Sale in Wayne, PA on the Rise, Renters Are Getting Squeezed in a Buyer’s Market
Years of strong growth in the housing sector has many prospective renters worried about their options and security. Amidst worries about evictions and skyrocketing rental prices, the thought of becoming a potential buyer instead of renter has never been more appealing.
The resurgence of rental requests is a bonus for property owners, but it has serious ramifications for anyone who chooses to rent instead of considering homes for sale. The lack of security and availability of rentals makes owning your own home a less stressful and possibly safer option. The rental market is expected to get even worse in 2016, leading to:
Higher Rental Rates
The laws of supply and demand are simple: when things are in short supply, the price goes up, and unfortunately, there is currently a shortage of rental properties. A survey of property managers indicated that almost 70 percent expected that rental rates will rise over the next twelve months, and most believe the rate hike will exceed the expected 8 percent increase.
Current estimates show rental vacancies at a 20-year low, with little hope the number will change soon. The shortage of properties for rent gives property owners considerable power, because property owners can set a higher than average market price and still attract renters.
Difficulty Negotiating Long-Term Leases
In previous years it was possible for a tenant to negotiate a home lease for three to five years, since such an arrangement was a win-win for property owners and tenants. The property owners had longer periods of guaranteed occupancy, while the renters had some stability in their housing situations.
Surging demand destroyed the possibility of a long-term lease for most renters. Due to the volatility in rent prices, property owners are opting for only 12 month leases in most cases. After the lease is over, the property owner can raise the price, even if the price change means pricing the current tenants out of the market.
Rising Eviction Rates
With an increasing number of homes for sale, and so few to lease, property owners have little incentive to work with renters facing financial difficulties. Property owners are actively seeking ways to drive low rent tenants out of properties, so they can be replaced by someone paying up to 50 percent more. A renter who fails to make on time payments every month risks the immediate filing of an eviction notice.
Sage Realty LLC is a real estate company committed to matching buyers to the right homes for sale in Pennsylvania. Sage Realty’s expertise in minimizing the stress of purchasing a home makes us a prime partner for finding the right homes for sale in Wayne, PA and other Main Line communities. Contact us today at 610-687-4000 for more information or to schedule a consultation.