Apartment Rent Rise as House and Condo Sales Weaken- By: John Cutts
Homeownership is no longer as popular as before and this is evident with the weakened house and condo sales activity as well as growing rate of apartment occupancy in most Florida cities like Orlando and Tampa. Based on a report from Marcus & Millichap, apartment rent fee increased by 2.2 percent by the end of 2010 to $864.
To date, Florida remains to be among the states with the highest foreclosures rate. In fact, homeownership rate has actually declined to 68 percent from 72 percent mainly because a lot of homeowners defaulted on their mortgage and had to leave their home and become apartment renters. Even interested home buyers, who are looking to buy foreclosure for sale in Tampa or other cities, end up renting apartments in the meantime due to the usual complications that arise with such transaction.
Of course, the enduring foreclosure crises and growing inventory of foreclosure homes for sale in Florida will most likely expand the apartment renter base for 2011. New jobs created by the recovering hospitality and leisure industry, particularly in the theme parks, will also be a factor for the growth in apartment occupancy.
Existing home and condo sales are also suffering due to the growing volume of home foreclosures. Although selling prices have dropped to $30,000 per unit, buyers are still waiting for some sign of market stability.
In the southern portion of the metro area, apartment occupancy is a lot livelier and healthier as the units are near the popular tourists attractions. Also attracting renters are the units near the University of Central Florida, located in East Orange.
Once the state’s housing market stabilizes, condo sales activity will likely recover. Florida remains to be the top choice for retirees and families who prefer a warmer climate and love being near a beach. Experts are saying it could be awhile for true recovery can be experienced especially with the high unemployment rate and still sluggish national economy.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.