Increase in Available Rental Units Likely to Slow Down Rent Growth
There’s good news on the horizon for renters: As the number of available rental units continues to the increase, the rate of rent growth is likely to slow down.
“Although an improving labor market with more jobs and faster wage growth should provide landlords with more leverage to increase rents, over time this will be stymied by the sheer number of new units that are going to come online, increasing competition in the market,” economist Ryan Severino told MarketWatch.
According to the news source, contractors have been steadily creating new units as the market prepares for an influx of new renters.
Image via flickr/Charleston’s TheDigitel