The Current Reality of Renting

According to DoorLoop, 44.1 million Americans are renters. Are you one of them?

Maybe you’ve been renting the same place for decades (lucky!), or maybe you’re one of the many who look for a new place to rent every year.

If you’re the latter, you’ve probably noticed a BIG change…

It’s not only getting more expensive to rent, but it’s also becoming harder to find a place to begin with.

What’s going on here exactly? Why is it so hard to find an apartment these days?

The biggest issue is low vacancy rates. We just aren’t building enough purpose-built rentals to accommodate our population growth. Big cities are hard hit by this, as land is at a premium, and it can be challenging to start a large development project. Not only that, but these large developments can take years, sometimes decades, to come to completion, much like this notorious condo project that took 40 years to finalize.

With low vacancy rates coming into play, landlords are the ones benefiting. After all, if they have the last apartment vacancy left in town, and 100 couples lined up to view it, they can pretty much charge whatever they want (and they do!).

Of course, prices are rising for rentals everywhere, causing many renters to do their best to anchor in place. It can cost a lot of money to pack up and move these days: first and last month’s rent, broker fees, moving company fees, and security deposits. This means units aren’t getting vacated on a regular basis, which is also driving low vacancy rates.

What can you do if you’re looking for a new place to live?

Start early – it’s a good idea to begin your search before giving your landlord notice. Check various social media listings, as ‘For Rent’ signs are becoming less common. Consider using the services of a realtor and start saving money, as changing your zip code will pinch your pocketbook.

If your finances have you worried about changing your rental situation (or maybe you’ve decided it’s time to buy), let’s talk about how that fits into your overall financial plan! To book a 15-minute consultation and chat about your plan (where you are now, and where you want to be in the future), it’s easy – just click the buttons below.