Investors Benefitting from Rental Shortage

December 23, 2014

Due to the undersupply of single-family homes and apartments for rent for the first time since 2001, institutional investors now have the upper hand. 

The rental-vacancy rate in the U.S. dropped in the third quarter to 7.4 percent, which means that rents are also expected to rise by 3.5 percent in the coming year while home prices are only expected to increase by 2.5 percent. Areas that saw the highest increase in rental rates include Las Vegas and Orlando where rents rose by more than 3 percent and 5 percent, respectively.


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