Are you worried about the rental rate on your latest lease agreement? 'Million Dollar Listing' broker says rent price will rise "even higher" amid rate hikes. (source)
'Million Dollar Listing' broker, Kristen Jordan, warns that the housing market is hot. Thus, rent prices could go higher as rates already continue to soar.
Jordan explained, "It's actually the first time we've ever seen rates go up when there's so low vacancy. The impact of low vacancy when you raise rates is that traditionally, [when] you raise rates, home prices come down and the rents go steadily upwards."
Inflation is at a 40-year-high and mortgage rates are over 5%. These conditions are stressors for Americans looking to buy a home. Jordan said it will take 6-18 months for the housing market cycle to replenish. She continues explaining that opportunities are on the horizon. But in places like New York City, it takes longer for properties to hit the pipeline.
Jordan stated, "[New York City] has a lot more regulations. It takes a lot longer for us to be able to build and offer to the public. I'm seeing a really, really big… kind of sway in where we're going to see that product." The real estate agent added that homebuyers will see more inventory in some states. These counties include Sand States, California, Florida, Arizona, and Nevada.
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