Rental Vacancy Rate – 2%, What's Going On?
by Pete Belcastro.
If you think there is pressure on the residential real estate market with low inventories, take a look at Jackson County’s rental market. According to Laurel Adams, Allcities Property Mgt. and Past President of the Southern Oregon Rental Owners Association reports Jackson County has a 2% vacancy rate. That means less options available for renters, more competition for fewer units and higher rental costs.
Residential real estate is in the same situation, with inventories 40% below a year ago. That creates a Sellers Market at sellers are generally getting most of their asking price with fewer concessions. Median prices have been rising in Jackson County for several years in a row and averaged 9.3% countywide in 2014.
But renters are having the hardest time. Adams reports only two vacant properties available out of more than 300 managed by Allcities. Doesn’t matter if its two bedroom or three, there simply aren’t many available. Renters seem to be staying put with less move-outs the past few months.
And as the economy has improved, many young people who moved in with their parents, are beginning to move out. They become renters before they become homeowners. More pressure on rents.
So beware, try to plan ahead as vacant properties don’t stay vacant long, especially nicer ones. And prepare to pay a bit more than you wanted also.
What will break first — the tight residential market or the rental market. Low housing inventories all the way around make it more difficult for those seeking housing than those who offer it for sale or rent.
You can listen to the whole conversation on the Real Estate Show which is available free of charge.
information about property management; contact Laurel Adams, Allcities Property Mgt. email email@example.com