HOUSING MARKET DOLDRUMS TRANSLATE TO A STRONGER MARKET FOR RENTALS!
MANY CHICAGO LANDLORDS SEE A RESURGENCE IN INTEREST IN RENTALS - AND HIGHER RENTS!
Two years ago, virtually every family who wanted to found themselves "qualified" to purchase a new home. (In retrospect, perhaps that should NOT have been the case, say many!)
As the housing market took off, the market for rentals, in big cities including Chicago, waned. Vacancies increased. Rental prices dropped. Incentives were prevalent - including reduced security deposits, free months of rent, and more tangible perks - like new TV's and FREE Internet.
Things aren't quite so dire for landlords anymore, as interest in residential rentals have surged here - sparked by many potential home buyers deciding to stay on the sidelines, on not being able to get financially qualified to purchase a home or condominium. (Recent statistics indicate up to 92% of those applying for rental are approved - far higher these days than those applying for a home mortgage).
The National Multi-Housing Council, a trade group representing apartment landlords, is now turning up the volume on its campaign to persuade many to rent, not buy, for now. They recently placed a full-page ad in Roll Call, a publication read widely by members of Congress, suggesting we "drop our obsession with home ownership (for everyone)."
The trade group also released research showing that landlords aren't really seeing much benefit from the recent surge in mortgage defaults and foreclosures. Those forced to leave their houses due to untimely sale or foreclosure, they contend, comprise less than 6 percent of all rental applicants.
Further, there has been no statistical increase rental defaults, and landlords say the number or tenants wanting to terminate their leases to purchase a home or condo has slowed down dramatically.
Read Mary Umberger's column in today's Chicago Tribune Real Estate Section for more info.
DEAN MOSS & DEAN'S TEAM CHICAGO
