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Welcome to the Rental Boom!

Written By ferdy aja on Rabu, 26 Maret 2014 | 01.25

By Marco Santarelli

Opportunity in the rental market is truly heating. Rates are rising, vacancies are dropping, and stockholders are looking to purchase properties for long term rental income.

Owners have enjoyed the advantage since the housing emergency as increased interest from renters coincided with very little new supply of rental units. Rising mortgage rates, tighter borrowing wants and higher home prices have taken many people out of the home-buying market. And, many remain burned by the housing crash and don?t wish to own a home.

The latest Rental Screening Solutions industry report published by TransUnion revealed that average rental prices have increased almost 4% nationwide last year while the credit risk of candidates for those properties as measured by TransUnion's Resident Scoring Model has continuously improved, with an average improvement of 1% in the last year.

Although buying a home is 35 p.c less expensive than leasing in the long term, a rising percentage of US citizens are opting to sign a lease instead of a deed. Pros envision home ownership will fall even further in the next few years.

Buying isn't the "American Dream" any more. The American Dream used to be equal in the American psyche with home ownership. Not so anymore. Today, the most popular definition of the North American Dream is retiring with monetary security, followed by being debt-free, according released in September by Credit.com. Just 18 p.c said that purchasing a home was the American dream.

According to Zillow information, home-ownership rates are envisioned to fall below 65% in 2014, the lowest level since the mid-1990s and an advantage to investors in property who will see increased requirement for their rental properties and continued increase in average rents and home costs.

These rising home costs will encourage Americans to move, but to more cost-effective areas where housing is more affordable. Urban areas like Atlanta, Dallas, Houston, Indianpolis and Kansas Town will continue to see a expansion in residents and make great investment markets to build your tunkey real estate portfolio.

Click the link below to see the inforgraphic: http://www.noradarealestate.com/blog/welcome-to-the-rental-boom/.

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