Rents on the Rise in Sacramento Region
The rental market continues to do well in the Sacramento region. One person described it like this, "It is hotter than a trendy restaurant in LA and you almost have to know someone to get into the right place." The Sacramento region has seen an increase* of 7% year after year on the median monthly rent for a three-bedroom single-family home for the past 2.5 years. The monthly average is $200 more expensive than the national average according to the Real Property Management survey.
One of the reasons that rentals are such a hot commodity is that investors who purchased the homes as rental properties have been selling them for a profit. There are more buyers that are long-term tenants then there are rentals available.
Investing in a property in an increasing national average region will bring the highest return on investment. There are more renters than there are properties available which drives the rents higher. After the housing bubble, the loan requirements have become more rigorous and many potential homebuyers have opted to rent out of necessity.
Young millennial's are postponing purchasing property altogether. With all those factors in play the rental housing market rents have been pushed up and will continue to rise. Many experts agree that interest rates will go up after the election. The best opportunity for property investment is right now. Having sold over 1000 investment properties, the Tiner Real Estate sales team has the expertise to help you acquire a great investment home in this hot market.
*Not all areas of Sacramento rental properties perform at the same level of rent increase
Posted on Tue, March 1, 2016
by John Tiner filed under