According to a recent report released by mortgage giant Fannie Mae, consumers are growing wary of increasing rental rates, and may soon head full-speed for the retail housing market.
The government-sponsored enterprise's October National Housing Survey suggests that consumers are keeping their eyes on the growing rental rates, which may soon lead to a mass exodus towards the retail housing market. As rents continue to grow across the country and home prices maintain a much slower pace of improvement, consumers are seeing the benefits of purchasing now much more than in recent months.
According to the survey, consumers believe that home prices will increase by 1.7 percent in the next year. Furthermore, many consumers believe that mortgage interest rates are going to rise sharply in the near future, leading many to believe that now is the time to purchase a home.
Rental property management officials who are looking to retain their tenants certainly have their work cut out for them in the face of increasing rates. However, in order to remain competitive with the growing market, property managers can attempt to keep rental rates low and offer incentives to maintain a steady influx of rental applications.