Last week, we looked at the trend of the real estate market in 2019.
Let's take a look at the rental market this week.
Not only do people rent a house for a longer period of time, but in some cases they prefer to rent a house instead of buying a house.
Developers Respond to this demand by building more units, which reduces rents in some places.
But supply remains a concern, especially at the low end of the market, where high occupancy rates push up rents.
When trying to find out what's going on in the rental market, the challenge is that the data can be contradictory.
This is because it depends on how each source collects its numbers.
Some people limit their data to large buildings.
Others limit it to the list on their website.
Family homes are not usually included.
Data can therefore be confusing.
But while these numbers may not agree, the insights they provide may be useful.
Here is a snapshot of 2019 predicted by rental experts: a wave of new apartments has suppressed the rent price growth of D. C.
According to RealPage, a technology company that provides software and analysis for the rental housing industry, the region.
Washington added about 11,000 units in 2018.
Another 16,000 people are expected to be online in 2019.
The influx of 7,000 to 8,000 units per year far exceeds historical standards.
However, this cycle, which began in 2010, brings an average of 10,000 to 12,000 new units per year. “D. C.
"The annual rate of rent has been lower than the national average for eight years," said Greg Willett, RealPage chief economist . ".
"This shows the number of online products.
"Rent growth in Washington has been around 2-2.
5%, but it is expected to reach around 1% by 2019.
Most of the units under construction are high
High-end luxury apartments are the best choice for affluent r rentals.
The check-in time for renting r is long, especially from middle to bottomend properties.
Prior to the housing market crash, the share of r leases renewed was about 40%.
In this cycle, the number is 53%.
Willett said: "in the inventory of apartments with more affordable prices in the country, there are very few rental r to move around, in part because there are so few housing for all except the richest rental r.
The impact of Amazon's expansion to Crystal City on the rental market is a bit outrageous, Willett said.
"What will come in will be something cooler," Willett said . ".
"It will take a while [
To transform Crystal City]
Especially if Amazon says it won't jump in and do everything at once.
Will Crystal City be cool in ten years?
Maybe, but I don't think it's done overnight.
"The National Housing Authority expects the occupancy rate to remain around 94 to 95% in 2019, with an average rent increase of 2 to 3%. Concessions —
To break the landlord's temptation to rent rare declining.
Research director Paula Munger expects apartment demand to remain healthy in 2019, even if developers continue to put more buildings online.
"I don't think we have caught up," she said . ".
"There is still a gap.
Not enough [apartments]
At all prices.
Investment in DC. -
The building area of the apartment is also very large.
Sales of apartment buildings increased by 27% over 2017, with Georgetown, Southeast Washington and ferfax having the most transactions.
"The apartment industry still offers a good return on investment," Munger said . ". “Between [rising]
Mortgage interest rates and insufficient supply of a single currency
On the family side, it is very difficult to transition to the homeowner now.
This is only part of the reason why the industry is so optimistic about "2019.
"Because Arlington County will deliver about 5,700 new apartments from now until 2021, Munger expects Amazon's arrival to not bring a lot of volatility to the rental market.
"We may be ready to accept all these workers and provide them with housing," she said . ".
Favorable economic factors have driven the country's average monthly rent to $1,419 by the end of 2018, according to dealcafe.
The data comes from buildings that contain at least 50 units.
The average monthly rent in the Washington area has risen to $2,461.
Rents in regional Highlands, Manassas and Temple Hills grew fastest, with Chevrolet Chase, Bethesda and Vienna growing the slowest.
Rent in Manhattan is still the highest in the country, with an average monthly rent of $4,200, followed by San Francisco ($3,609)and Boston ($3,292).
How to cost a sign
Nowadays, the terms "cheap apartments" and "studio" account for almost half of all apartments --
Google related search.
But "luxury apartments" also occupy an important position in the search. In its year-
End report, an apartment search site, said, "it is very interesting that although many consumers have abandoned ownership of their homes, the rental market has not changed significantly on average.
Abodo extracted data from 1 million listed companies across the country and found
The monthly rent price of the bedroom fell 2.
The monthly rent for the bedroom in 2018 was basically flat.
National average monthly rent of $1,025
$1,255 bedroom unit and two bedroomsbedroom.
Rents in 28 states and the region increased last year.
They have decreased in 22 states.
South Dakota is the only state with stable rent.
San Francisco is the city with the highest rent, with a monthly rent of $3,535, while the average rent increase in Las Vegas is the largest (4. 9 percent).
Zillow and its rental site, HotPads, are expected to see an increase in rents in 2019.
Joshua Clark, an economist at HotPads, said: "Changes in the market are creating a more favorable environment for renting r . ".
"The slowdown in rent growth has reduced the pressure on renting r wallets, the new building provides more options for renting r, and the increase in the number of people moving --
Supply is getting closer to meeting demand in special offers.
Rent r that wants to move now has advantages that have not been available for many years, but the opportunity to benefit from this market can be very short --lived.
The rise in interest rates and the rise in house prices may stimulate rental demand next year and eventually make the market more competitive again.
Aaron Terrazas, senior economist at Zillow, said rent growth could remain below inflation or below inflation at a rate of 2% per year.
He predicted that the occupancy rate of the old buildings would still be high, while more vacancies could occur for the newer buildings.
"We expect that there will be fewer renters to transition to house ownership in 2019, so the occupancy rate of old buildings-
Especially the most affordable old buildings.
Should be kept high while newer and higher-
"Terminal Unit Occupancy may deteriorate," Terrazas said . ".
Although newer buildings tend to rent more than older buildings, the gap between the two has grown in recent years.
"Part of the reason is that the construction costs are high and new apartment buildings tend to lean towards the top of the market," Terrazas said . ".
"This is part of the trend to push up rents --
At the top of the market, rental growth slowed significantly from the bottom.
In its post on trends in 2019, the Apartment Guide predicts that leasing will become more streamlined as apartment buildings adapt to new technologies.
High rise apartments will exceed high rise apartments
End the apartment building when it comes to amenities.
Looking forward to seeing yoga studio, bike rates, rooftop pool, car-
Charging stations and retail for new buildings.
The safety of doormen and the front desk will be strengthened.
Renting r will take advantage of the smart lock in-
Home camera and wireless home security system.
While powerful WiFi and phone reception are essential, renting r will also look for built-in
Charging station with USB socket.
More real estate: what actions can decision makers take to avoid the brewing national housing crisis?
Survey: Millennials rent r plans to wait for buyers to weigh what the 2019 housing market will bring