Friday, August 18, 2006
Rental Rates
With rising interest rates and increasing foreclosures, there are more tenants looking for rental properties than in the past several years. Numerous articles predict a decrease in apartment (and other rental unit) vacancies and an increase in rental rates.
Atlanta, however, will not feel the effect as much as other areas of the country. As the price of homes in Atlanta did not increase at the same rate as the rest of the country, so too the increase in rental rates will be more moderate.
Many parts of the country, metropolitan New York, Washington, DC, San Francisco, etc., have limited growth potential, and therefore few new rental units get built. Atlanta, in contrast, still has room to expand its boundaries. Rental units are plentiful, and therefore, supply and demand does its job of keeping rents from rising faster than the overall economy.
Atlanta, however, will not feel the effect as much as other areas of the country. As the price of homes in Atlanta did not increase at the same rate as the rest of the country, so too the increase in rental rates will be more moderate.
Many parts of the country, metropolitan New York, Washington, DC, San Francisco, etc., have limited growth potential, and therefore few new rental units get built. Atlanta, in contrast, still has room to expand its boundaries. Rental units are plentiful, and therefore, supply and demand does its job of keeping rents from rising faster than the overall economy.
# posted by Bob @ 4:53 AM 
