Renters are now beginning to face the downside of the housing market as landlords are suddenly raising rent prices across the country.
According to the article, “Renters are next victims of the housing market” on today.msn.com, the rental market has shifted from a tenants’ market to a landlords’ market.
Chris Herbert, research director at Havard’s Joint Center for Housing Studies, said in the msn article, that the supply of properties is becoming sparse thus causing vacancy rates to drop, and therefore landlords are raising rent prices.
Rent prices are predicted to rise 5 percent this year and another 5 percent in 2012, and not moderating until 2013. Which is also the same year that Moody’s Analytics predicts the prices of the housing market to rise.
Other facts reported from the article:
- As of 2009, more than 19 million households paid over have of their incomes on housing.
- Households in the $45,000 to $60,000 income range have faced sharp increases in housing costs over past years.
- National apartment operators say 2011 can expect above-average rent increases.