I read an Article and it kind of made me think twice about buying a rental property anytime soon. Since I'm new to the game and live in a place called Utah where we live in a bubble that has a 55K unit housing shortage. We haven't really seen rents go down or any of the houses lasting on the market more than a few days. Is there really going to be a drop in the rental market going on?
It seems pretty regional. Rents are up here in Akron.
Rents are up in my area in South Carolina, too. And any decent rental is snapped up shortly after listing, they're not staying on the market long.
@Dawn P. We are finding that kind of demand here as well. I put a nicely renovated unit on the market 2 weeks before Christmas and had six qualified applicants with completed applications in four days-- I was quite happily surprised.
@Bradley G Fagg Agree with the others. Real estate is very regional.
I don’t think you can take what’s going on in San Francisco or Silicon Valley (two places mentioned in that article), and make any sort of accurate comparison with what’s going on in Utah.
I live a short drive from both San Francisco and Silicon Valley, but outside the Bay Area. And I’m seeing the exact opposite of what’s mentioned in that article. (I’m actually RAISING rents.)
Point is, you have to know your local market and you definitely can’t base your decisions on what’s going on in some other market/state.
@Bradley G Fagg It sounds as if the first paragraph of the article answers your question. Even in the first sentence, it seems.
" If you’re looking for your next rental investment, you’ll probably want to steer clear of any major tech hub."
I live in Southern California and have been studying into this a little bit myself. It seems to apply primarily to big-tech based cities. San Francisco, Seattle seem to be a couple of the cities experiencing rent decreases due to people working from home and wanted to cut costs.
If "Tech" is the only reason for this decrease, steer clear of these kinds of cities and you should have one less problem to worry.
It's a headline meant to grab "clicks". I know of quite a few folks in San Francisco, Oakland and parts of the East Bay like Antioch, Richmond and Pittsburg that have not lowered rents at all. Quite the opposite.
Now if you own commercial property that was leased by a tech company or you had tenants that work for one of those tech behemoths....as the article suggests.....that is a different story.
The article (not surprisingly) does not focus on the fact that when a tenant in a rent controlled property has moved out of their place here in the San Francisco Bay Area.....how some smart landlords are now able to get MORE rent per month with a new tenant because the previous cash tenant had somewhat of a "cap" on how much rent could be raised.
@Tommy Daggett thank you so much for your insight. Worried me cause Utah is trying to become a tech hub.
My rents in DC are stable. I know some people have raised rents. Some have dropped.