With housing sales slumping across the United States, bigger landlords are benefiting with record-setting occupancy rates. Over the spring of 2019, homes sales were lower than most economists predicted. Many thought home sales would be higher due to the record low unemployment rates and the low boring costs.
However, with home sales lower, big home rental companies are benefitting due to high occupancy and many tenants renewing their leases.
Good School Districts Drawing Attention
Investors willing to buy homes in suburban school districts with high ratings are profiting the most from the higher rents and the lower home sales. Family-sized rentals in these areas are helping some rental companies remain profitable because many families are staying put and others are looking to move into these areas without buying.
Homes Sales Dip and Rental Rates Rise
During the spring, when about 40% of home sales happen, existing home sales fell 1.7% in June. For the 16th straight month, home sales have declined.
On the other side of the coin, rentals for many large landlords have risen. In fact, some companies saw as much as a 20% increase in the second quarter of this year.
Why are Home Sales Struggling and Rentals Flourishing?
One of the main reasons home sales are down is the affordability for first-time homebuyers. Many buyers are remaining renters because of the higher home prices, which means a higher down payment. Since the down payment is usually a percentage of the home price, higher prices mean larger down payments.
When potential homebuyers cannot come up with the necessary down payment, yet they have a family too large for an apartment, they have few options. Most turn to renting a home and those already in a home are staying put.
Maybe you’re one of those families still renting, even though you’d like to buy. Many first-time homebuyers may be able to buy if they look into specific assistance programs and other means of coming up with the down payment. It may also help to adjust the price range you’re looking in when it comes to the right home for your budget.
Searching for homes for sale in Mint Hill, NC can be difficult when you don’t think you can afford the down payment. However, the right real estate agent may be able to help you find the right home, which fits both your family and your budget.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger 704-650-5707 | firstname.lastname@example.org.