I forcaest that Rents will shoot up

General Real Estate Investing
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I forcaest that Rents will shoot up

Devin JamesPro Member
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes

1) Inventory is drying up

- Build-to-Rent developers stopped starting new developments when rates spiked, and that slowdown in starts will hit the market soon, resulting in less inventory.

2) The rent vs. own equation is upside down

- Usually its cheaper monthly to own than to rent, but today that’s not the case in many markets. Because of this, I expect home values to stay steady or drop in some areas, but rents will rise to rebalance the spread.

Im looking for ways to get ahold of some rentals in preperation of this

[email protected]
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  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    1y

    How does one "forcaest" and does it require special shoes?

    1Reply
    • Devin JamesPro Member
      OP
      Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
      1y
      Quote from @Eric Gerakos:

      How does one "forcaest" and does it require special shoes?


       Haha! Need to wear size 12+ to be able to forecast

      [email protected]
      1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Devin James:

    1) Inventory is drying up

    - Build-to-Rent developers stopped starting new developments when rates spiked, and that slowdown in starts will hit the market soon, resulting in less inventory.

    2) The rent vs. own equation is upside down

    - Usually its cheaper monthly to own than to rent, but today that’s not the case in many markets. Because of this, I expect home values to stay steady or drop in some areas, but rents will rise to rebalance the spread.

    Im looking for ways to get ahold of some rentals in preperation of this


     I would put word of caution as rents have never historically "shot up" - cannto insert photo so here is link, but take out covid and rents are pretty predictable-only chance rents shoot up is if salaries increase substantially as everything else got very expensive for consumable goods past few years but salaries did not.

    Average Mortgage Payment 90% Higher Than Average Monthly Rent | RealPage Analytics Blog

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    3Reply
    • Devin JamesPro Member
      OP
      Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
      1y
      Quote from @Chris Seveney:
      Quote from @Devin James:

      1) Inventory is drying up

      - Build-to-Rent developers stopped starting new developments when rates spiked, and that slowdown in starts will hit the market soon, resulting in less inventory.

      2) The rent vs. own equation is upside down

      - Usually its cheaper monthly to own than to rent, but today that’s not the case in many markets. Because of this, I expect home values to stay steady or drop in some areas, but rents will rise to rebalance the spread.

      Im looking for ways to get ahold of some rentals in preperation of this


       I would put word of caution as rents have never historically "shot up" - cannto insert photo so here is link, but take out covid and rents are pretty predictable-only chance rents shoot up is if salaries increase substantially as everything else got very expensive for consumable goods past few years but salaries did not.

      Average Mortgage Payment 90% Higher Than Average Monthly Rent | RealPage Analytics Blog


       Lots of good info in that article, thanks for sharing! What do you suspect to happen with the imbalance? A slow rebalance of the scales?

      [email protected]
      0Reply
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