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The post below has been curated from Zillow. Read the entire article here.
The rental market has been growing at an accelerated pace for several years — with rental appreciation outpacing home value appreciation in many regions — but as the rate of growth has started to slow, what can we expect in 2017?
Zillow’s senior economist, Dr. Skylar Olsen, predicts that rent growth, which peaked in July 2015 and has since slowed in some areas, will continue at a steady but more moderate pace across the U.S., with notable exceptions in hot markets.
Here are five top predictions for the rental market this year.
1. Rental affordability will improve as incomes rise and rent growth slows
2. The homeownership rate will go up as millennials age
3. New development will prioritize smaller homes close to public transit, but many renters will still be pushed to the suburbs
4. New homes will cost more as construction becomes more expensive
5. Interest rates will increase (no, really!)
What are your thoughts about these rental marketing predictions? Spot on, way off, or well…?