If you’re looking to purchase U.S. real estate to develop cash flow through rentals, the opportunity just got a lot sweeter very quickly.
Yesterday, I wrote about a CNN news story reporting that it was now less expensive to buy a single family home than it was to rent one. Today, another report, this one from Rismedia:
“Rental vacancy rates are at their lowest since 2003 and still falling, which will drive up rents even faster than the 2-3 percent average annual increase predicted earlier this year. Moreover, with demand outpacing supply, the rent-to-buy equation is turning increasingly favorable in markets across the nation.
The Census Bureau reported that vacancies for rental housing were only 9.2 percent, 1.4 points lower than a year ago and .5 percent below the first quarter. We haven’t seen a 9.2 percent vacancy rate since 2003. The median asking rent for vacant units was %684…..With mortgage rates falling, median home prices below last year’s levels in most markets and rents taking off towards 4-6 percent, homeownership will make renting look unbeatable.”
The perfect storm for Canadians continues to provide an outstanding opportunity.