Bidding War May Be Moving to Rental Front
The country’s apartment sector is seeing more bidding wars as tenants jockey for available rental units in increasingly tight markets.
Nationwide, rent for a 1,000-square-foot apartment has risen 3.7 percent in the last year to $1,389 a month, says Property & Portfolio Research Inc.
One of the main reasons for climbing rents is the reduced inventory of units, created in part by developers that built condos or converted rental stock into for-sale units during the home sale boom.
In the second quarter of this year, rental vacancy rates fell to 5.3 percent from 6.2 percent in the year-earlier period. This has produced what is known as a “landlord’s market.”
Source: Wall Street Journal (10/11/06)