With the number of properties falling under bank and government foreclosed homes list continuing to rise in most areas of Florida, more and more people are opting to rent homes rather than purchase them. The housing market's decline is feeding the growth of the rental housing industry, realtors have reported.
According to realtors and brokers, as Miami foreclosures and distressed property numbers in various markets of Florida continue to increase, values of properties continue to decline. This has discouraged majority of state residents to purchase dwellings. For most of them, renting is the better option at the current status of the residential property market.
The surge in the number of renters also encouraged commercial establishments to open units in locations with high number of renters. Restaurants and other commercial spaces have appeared in most cities despite the growing list of foreclosure homes in Florida. These establishments are taking advantage of the young professionals who are mostly renting apartments in big cities and urban areas.
The increased demand for rental housing, coupled with improved commercial offerings, has resulted in rising rental rates in most parts of the state, particularly in South Florida. According to housing market observers, tighter credits and high number of bank and government foreclosed homes list are giving the rental sector a chance to dictate market trends.
Most industry experts are predicting that the status of the state's housing market will worsen in 2011 as bank foreclosures homes continue to increase during the year and housing values continue to drop. However, the rental market is projected to grow even more in 2011, with rental rates for high-end properties expected to increase considerably during the period. The rental market is being buoyed by the fact that almost 95% of properties in the region of South Florida are occupied.
Rental rates are projected to rise in the areas of Broward and Miami-Dade County, with the former expected to record a rental fee increase of 5%, while Miami-Dade is forecasted to increase rates by 2.3% in 2011. These rates will be even higher, analysts have added, if the number of properties under bank and government foreclosed homes list continues to rise during the year.
Warning: include(): http:// wrapper is disabled in the server configuration by allow_url_include=0 in /home/onlineb1/public_html/realestateproarticles/inc/extra_rlinks.inc.php on line 149
Warning: include(http://www.realestateproarticles.com/catads/cat277.php): failed to open stream: no suitable wrapper could be found in /home/onlineb1/public_html/realestateproarticles/inc/extra_rlinks.inc.php on line 149
Warning: include(): Failed opening 'http://www.realestateproarticles.com/catads/cat277.php' for inclusion (include_path='.:/usr/local/php56/pear') in /home/onlineb1/public_html/realestateproarticles/inc/extra_rlinks.inc.php on line 149