Home Rental Prices Lower Than Ever Amid Struggling Economy

If you are in the market to rent a home, right now may be the best time to do so. As the economy has declined, namely in the real estate sector, where homes have lost an estimated two trillion in value in the fiscal year of 2008, many people are turning to home rentals to find a place to make their abode. And who can blame them when buying a home right now just does not make much sense. On the other side of the field we have groups of avid investors who have plenty of capitol that are buying up homes that are being short sold to the banks in the hundreds. These same investors will rehab the homes and then turn them on the rental market for a few years until they break even and can sell them for a profit. Why Home Rental Costs Have Declined It’s all about supply and demand when it comes to home rental costs going down over the past two years. As more homes become vacant, and more investors leap at an opportunity to make a quick dime in a few short years, the supply has increased much more so over the demand. The spur of home vacancies has made finding renters a tough market for home owners who manage rental units. This has caused a lowering in prices to match the economy and the current amounts of home vacancies, which are at all time highs. What this means for renters, is that it’s their market. They can literally find the best deals on home rentals now, better than those that have been offered in more than thirty years. Now is the time to rent a home for those seeking the most lucrative deal on a home rental.  Less People Are Buying Homes With less people buying homes, and more homes becoming vacant, those who are trying to sell their homes are seeing them sit stagnant for months, sometimes years at a time. As the banks tighten up their belts and decline most loans that come their way in fear of more fallout—regardless of the bailout they just received—many home owners are turning to renters to find a way to make ends meet until the market recuperates and they can try and sell their home under more favorable terms. This increases the amounts of home rentals that are available and creates an ideal situation for the person who wishes to get a great deal on renting a home. More Investors are Purchasing Houses As more homes enter the foreclosure process and are sold for rock bottom prices at home auctions across the country, it’s a spending spree for investors who have plenty of venture capital that are stepping in and finding the best deals on homes in thirty years. This influx of investors buying houses has spurred more vacant homes than ever before. And most investors want the homes to sit on the market for a few years so they can gain more equity, and so they can rent them out for favorable monthly rents and sit and wait patiently for their returns.