Prices on rental properties grew 6.7% in June as more Americans
chose low-risk rentals over homeownership, a new report from
housing search engine HotPads.com said Thursday. The agency,
which compared June prices to last year, attributes the
rental-price surge to pent-up demand among first-time renters and
larger families who can no longer afford homeownership or who
lack faith in the stability of home prices. San Francisco-based
HotPads.com reached this conclusion by studying the median
listing price of 500,000 rentals located in major metropolitan
areas. Price hikes in the studio and five-bedroom rental segment
grew the most, rising 14.3% and 12.1%, respectively. HotPads'
study is in line with analyst projections that show pent-up
demand for rental housing in the wake of the credit crunch.
Americans who rented out properties gained $3.3 billion in total
income from that endeavor during the month of May, up from $2.9
billion in April, according to the US Bureau of Economic
Analysis. After surveying more than 1,100 property managers in
June, credit reporting agency TransUnion concluded that apartment
demand is up, especially among Americans who lost homes to
foreclosure.
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