Residential rental home prices on the rise

FILE (AP Photo/Paul Sakuma, File)

FORT WAYNE, Ind. (WANE) – National reports indicate rental home prices are on the rise. A local expert says he’s noticing a similar trend.  Just this year alone, demand went through the roof and prices climbed by three percent.

Jim Bradley with Century 21 Bradley here in Fort Wayne has been in the real estate business since the 70s. He says it cyclical, and right now with the upturn of the economy residential rental homes are in demand. So much so, for the first time in years all of his rental properties are filled.

“We have a gal who rents houses. She always has a few available. We just talked to her and she’s like, ‘Jim, I am leased up! 100 percent,'” Bradley said.

It’s a trend local real estate experts at Century 21 Bradley began noticing this year: more people looking for residential rental homes. With the demand high, Bradley says they’ve increased their rental prices by three percent.

“Usually they are not all leased up. If you are in the market for a rental, you can usually go find one. Right now if you are looking for one for today which is the middle of April here, I think you would find there’s not that many to look at.”

As far as rental communities like apartment complexes go, Beth Wyatt with the Apartment Association of Fort Wayne and Northeast Indiana says prices are steady. In other metropolitan areas though that’s not the case.

“I would say standard for price increase in our market is anywhere from $10-$25 a month. That is a normal increase: cost of business, insurance, property taxes – all of those things. In the larger markets, you could see $100 a month easily added to your bill upon renewal. So, that is a big difference,” Wyatt said.

Based on our economic factors, Wyatt says our apartment communities here don’t anticipate any big price hikes in the next several years.

“Our cost of living is very affordable in this area of the state. So, whether you are a renter or homeowner, a condo owner, whatever it may be there’s a lot of options and a lot of different price points.”

The national reports blame the last recession to many adults moving in with relatives or looking for roommates. The reports say about 32 percent of adults in the U.S. did that in 2012.

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