Let’s talk about the renting market right now, specifically the multifamily housing market. In 2021, rent prices went up a whopping 11.3%, which is drastically more than the usual 2-3% that normally goes up every year. Because of this drastic increase in rent prices it is making it harder for people to be able to afford rent prices, let alone a mortgage if they are buying a house.
A lot of real estate agents have seen a huge fluctuation in properties that are for rent. During peak Covid in 2020-2021 the housing and rental market was crazy. Houses were selling for thousands more then what they were worth because their options were so limited that everyone was trying to buy the same properties. Rentals were even harder. A lot of people who were renting their homes were told they had to move because homeowners were selling the house because of the market. This pushed a lot of renters into apartments and other multifamily housing options, like mobile homes. Because of this, where people use to be able to find rentals that were always readily available, now there were month long waits, even in areas that were less then desirable, because people were desperate to find housing for their families.
After doing some research, it looks like that because of the demand for housing, that when people are going to resign their leases, they are being told that their rent is going to be hundreds to possibly thousands of dollars more expensive (depending on their location). The problem is that while houses are in abundance, even if they aren’t for sale at the moment, apartment complexes have not been built to match the upcoming generation of millennials that are going to need housing.
There is also a standstill on building houses and other buildings in some areas because of the rate of inflation. With the cost for supplies being so high right now, many projects have come to a standstill because people either can’t afford the supplies or the supplies just aren’t there for one to use. Another issue that many are having is that cannot find contractors to actually build said homes/buildings.
With all of this going on, many people are turning to the multifamily housing options to be able to live somewhere. They are turning to mobile homes, apartments, and even co-ops to be able to have roofs over their heads. While this is great for the rental companies, it is harder on the renters to be able to find housing that is available.
