Rental market improves in March

The rental market improved in March.

A report from Freddie Mac showed that commercial property managers may have seen an increase in rental activity to start 2012.

The government-sponsored enterprise's U.S. Economic and Housing Market Outlook showed that 1.5 million households switched from a house to a rental property during the year ending in March, which was 4 percent higher than the previous year. In addition, rental vacancy rates have declined close to 2 percentage points since 2010.

"Further increases in rental demand are likely in the coming year as newly formed households postpone homeownership decisions until the economy strengthens and they have accumulated sufficient savings," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Overall apartment market trends may show further vacancy declines and rent gains, with property values improving as well."

Rents have increased slightly – between 2 and 4 percent – from March 2011 to March 2012, but when adjusting for inflation, this is still lower than rents during the period before the recession, the report added. Finally, construction of properties with at least five units increased nearly 50 percent during the first quarter when compared to the same point in 2011.

Share
Disclaimer: All data and information provided on this site is for informational purposes only. Zoliath.com makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, opinions or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.