If you’re currently renting, you probably know that rental prices have increased significantly in the last couple of years. In fact, inflation-adjusted rents increased 7% since 2001, whereas inflation-adjusted household income dropped 9% according to Harvard’s Center for Joint Housing Studies.
As a result, nearly half of all renters can’t easily afford their monthly rent. Experts suggest spending approximately 30% (or less) of household income on rent, but nearly half of all tenants are spending more a higher percentage of their hard-earned paycheck.
There are a few reasons for rising rental prices, but many speculate that it’s largely an issue of supply and demand. Builders simply can’t build apartment complexes fast enough for the demand, and the prices have been driven up as a result. But it’s all good news for investors! If you’re thinking of becoming a landlord, we’d love to help you find a great investment property. Just give us a call at (215) 699-5555.