Photo: CHRIS DELMAS / AFP / Getty Images
What is more convenient to rent or buy? During the past month of April the average rent within the 50 largest metropolitan areas in the country reached $1,827 dollars, that is, one 16.7% more than what was registered in April 2021 . If this trend continues, the typical rent could be more than $2,000 monthly dollars for the month of August.
According to Realtor.com the national rental vacancy rate is it has held below 6% in each of the past three months. The increase in rents is due to the fact that the offer has not been able to satisfy the high demand.
The panorama has favored the owners, who have the possibility of charging higher rents, and many times they do. This and the rise in prices, due to inflation, has led rent seekers to make a higher outlay, said the economist and head of Realtor.com Danielle Hale.
“Tenants are left with little choice but to pay higher rents, and in some cases even offer prices higher than the (landlord’s) asking price, whether they can afford it or not,” he told CNN.
On the other hand, the pace of home sales fell by 10.6% in April from the previous month. This is the fourth consecutive month that home sales have decreased. Analysts surveyed by Refinitiv forecast a 1.7% drop.
The Census Bureau said that the median home sales price hit $450,600 dollars last month. The increase in interest rates, above 5%, has taken out of the market to potential buyers.
The Nay Federal Credit Union corporate economist said that other aspects are also influencing buyers such as high construction costs, interruptions in supply chain and higher mortgage rates.
“Since the pipeline to bring new houses to market is so narrow, we shouldn’t expect housing construction to add much to the housing stock for the foreseeable future,” he said.
A year ago, on 25% of new home sales were priced below $300, dollars, said First American chief economist Odeta Kushi. “ In April of this year only the 10% of new home sales will be priced less than $300, dollars”, he said.
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