Tuesday, March 13, 2012

Are rising rents in the U.S. cause for concern?

Rent prices increased 3 percent nationally year-over-year in January, suggesting a possible rental bubble. According to CNBC, when rents increase, renters generally turn to home purchases.
A thriving rental market will stimulate home sales, as investors snap up low-priced inventory to convert to rentals. That, in turn, will lower the number of homes on the market, which will eventually help put a floor under the value of all homes.

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