Are rents going down?
Published on: Monday, March 11th, 2019
As it turns out, at this moment, here in Omaha rents seem to be stable…which actually normally implies that the market is strong…strong as in rent forces may be pushing rents up. However, according to national averages that may not hold. For years everyone was wondering why Millennials weren’t buying homes. Well, now it’s known. In 2016 that generation started buying homes again, but why?
Well interestingly, according to this article, and others it’s because living in rentals was getting expensive. Especially in the newly reconstructed/refurbished mid/downtown buildings being brought back online. The cost of construction really did skyrocket to the point that it was impossible to build (or rehab) anything other than A class and so the markets have been inundated with high end rentals. That applies upward pressure on the rentals and…something has to give. At some point the good money is in ownership and 2016 is when that happened…and it’s also what’s now driving an increase in home prices. Weird how the markets work, eh?
But…just to throw some sand in the gears, it appears 58% of Millennials are not all that happy about purchasing a home. They have a sort of buyers remorse. Update, here’s another article claiming around 70% of Millennial homebuyers regret the decision to buy. Which beckons the question…will their recent tendency to buy last?