Rental Market Pros and Cons

In a new ranking, Arlington ranked as one of the top 10 cities with steepest rent increases last year. This is not so good for renters but pretty darn good news for investors.  The rental market is booming in our area.  Rent is up an average of 2.3% this year and more in some areas.  Not everyone wants to be a homeowner, but renters are facing a squeeze. With mortgage rates historically low and home values slow to recover, in many cities, the cost-benefit analysis is shifting toward buying. Jobs are plentiful and people continue to relocate to the area.  With less supply of rental housing available in the near term, rental rates will continue to remain strong in the years ahead.  Trulia rated the DC metro area in the 'better to buy than rent category'. The index calculates the price-to-rent ratio using the median list price for two-bedroom properties compared with the median rent for two-bedroom apartments, condos and townhomes. So what does all this mean for you? If you are a renter, you should strongly consider buying while rates are low.  If you are an investor, consider buying as rates are incredibly low and the rental market will continue to remain strong in this area.    (We've helped our clients do both this year!)