Rents’ rising tide could lift house prices’ ships

Great artice from Builder…

The apartment folks and the for-sale “single family” folks mostly think of themselves as fierce competitors for the same universe of households. Scratch that. The Great Deleveraging of U.S. households, businesses, local governments, and eventually the Federal government is a game-changer. In fact, households, including the fact that they’ve not been forming at their hisorical pace, have been in a state of reaction to pain. Now, they’re beginning to regroup–rental vacancies are dramatically down. This means empty places to live are getting absorbed. Rents are going up. As excess supply gets tight, house prices will take their turn at stabilizing and eventually going back up. Calculated Risk has comment and pictures, and a Tom Lawler forecast bearing this out.

To read more click here: http://www.calculatedriskblog.com/2011/04/forecast-rising-rents-to-slow-house.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29&utm_content=Google+Feedfetcher

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