Apartment rents shatter all-time records. Rents are predicted up 10%
Keep in mind that this article is about Boston- but it is applicable to Worcester as well.
Another great Banker and Tradesman article.
The Crux of the Issue
The crux of the issue here is that rents are going up and apartment owners are looking for double-digit rental increases.
Salary vs. Rent Increases
I don't know many people who have had a 10% increase in their salary; how are they going to pay their rents?
Construction Trends
This chart shows how apartment construction goes up during a recovery and drops off during a recession.
We are seeing a drop-off in construction now, but a lot of that has to do with the increased construction costs (both materials and labor). But does it mean we are ready for a recession and builders are preparing?
Worcester's Inventory
Worcester appears to be adding more units to its inventory, so it should be able to have more moderate rental increases and have additional inventory in the coming years.
Comments