Why is the Rental Market so Competitive Right Now?
If you’re currently trying to find a rental you may be noticing that rental prices are skyrocketing and securing a place to rent seems harder than ever. While there could be a large number of reasons behind the current shortage of rentals, one of the big ones seems to be due to the current Real Estate Market.
The Real Estate Market is booming, arguably the healthiest it has been in decades and homes are selling not only extremely fast, but in most cases for far above asking, which in turn, gives the seller’s a large sum of extra cash. While many sellers are choosing to use the cash to invest into a different home, for some, they have simply chosen to sell when they could get the most for their house, and then choose to rent.
With so many seller’s choosing to currently rent, rentals are not only in short supply, but many of those who have recently sold their homes for a large profit are offering to pay the rental term in full, in cash. This is hard to beat, and many landlords will jump at the opportunity to take in a renter who is able to pay their lease term in full and avoid any potential losses from a tenant who may be late on rental dues.
While rentals aren’t currently impossible to find, they are definitely not as easy as they once were. Unfortunately, there is no for sure way to know what the Real Estate Market will do within the next few years, however, many of these sellers who have taken up residence in rentals are banking on the market shifting, thus favoring buyers, and then they’ll make their move to re-invest in a new home, opening the rental market back up.
Related: What is a Leaseback?
Another reason rental homes may be harder to find is simply because homeowners/landlords are trying to jump at the chance to sell their rental homes for top dollar, thus not renewing current leases or re-renting, pushing the renters into an already competitive rental market. While many people believe that buying and selling Real Estate doesn’t affect the rental market, in today’s world this couldn’t be further from the truth as the two seem to be playing a competitive game.
Regardless of if you are trying to purchase a home and need a short-term rental, or if you’re a seller who is hoping to rent until the market shifts, it is important to look at all of your options and explore the rental market in depth to ensure that you are able to not only find a rental, but find a rental that fits your needs, wants, and is within your budget.
If you’re currently searching for a new home, are ready to sell your home, or if you have any questions regarding Miami Real Estate, please feel free to contact our office at any time and we would be more than happy to assist you.