Is the Recession Good for Rental Property?

September 22nd, 2010 by Snow Conant| Posted in Facts & Figures | No Comments »

Construction of new apartment buildings propelled a housing permits surge in the month of August, according to the US Commerce department.  This will be the largest increase (10.5%) in new construction since April and it brings up many questions for property owners, current landlords, potential tenants, and those of us here at MyNewPlace.com.

Seasonally Adjusted in Thousands*

While the recession has negatively affected nearly every industry and individual across the board, commercial and residential construction seem to be among those hurt the most. I don’t know about the rest of you, but my boyfriend and I have elected to stay in a cramped apartment for an additional year while we save money and pay down some loans – a decision largely prompted by fear of a double-dip recession. By this time next year maybe I’ll be thinking about two bedrooms, a dishwasher, or, please-please-PLEASE a washer and dryer in-unit, but at this point it feels safer to stockpile savings. Each having our own closet will just have to wait! Apartment or no, I am sure many of you are facing similar decisions. How many 2007 housing-upgrade dreams turned into 2009 food bills?

So here is my question: has the recent economic downturn driven a large scale of people into the rental housing market? Are property owners seeing a surge in lease applications? Or are tenants, like my boyfriend and I, staying put in their current situations instead of facing the financial and emotional toll of moving? I have my story, but I am very interested to hear those of others. I can quote statistics until they come out my (and your) ears but let’s hear from real estate owners, contractors, tenants and property managers to try and get a real picture of what’s going on.

*graph courtesy of npr.com