- Queens, NY
- Votes |
Housing prices have inflated over the last year and a half significantly.
For example in a market where in mid 2020 a two-family was priced at 160K, it is now priced at 260K.
My consistent question is does this price jump equate to a tangible jump in rental prices? If the property had renters at $600 and now the property is market set at $260k, the rent must go up. Rent should now be priced at 1%, or $2600 between the two apartments to ensure profitability.
However in those markets, can you now charge $1300 to a renter who was paying $600? If I evict due to lack of affordability, will I find renters in that market who could afford $1300? Or, would I attract renters from a different area to come to that market and pay the new rent? With such low rent the area might not be the best and encourage new renters to move.
I'm consistently wondering if the rapid inflation translated into tangible profits, particularly in the hold multifamily markets.
If anyone has any information to share, I would appreciate it.