A greater demand for rental housing has been occurring in the real estate market, as home prices have shown drops of 30 percent since the credit crisis, according to a recent report from The Atlantic.
The rental market has been thriving from these price drops. As a result of the increased occupancy, rental property management companies have gained more power, allowing them to increase rents. One example of the gains in the rental property market includes rental occupancy and rent increases in the Manhattan area. According to the news source, rental occupancy in Manhattan in the second quarter increased to 98 percent, and average asking rent prices jumped to over $3,720 per month for a two-bedroom rental property.
Another area of the rental market that is greatly improving is construction for multi-housing units. In today's tightened lending environment, many lenders are reticent to approve loans for new home constructions, but are eager to finance rental housing, the news source states. The return on rental property investments has increased to nearly 15 percent, according to data from the National Multi Housing Council.