Demand for rentals- high due to “job growth”? Really?

Demand for rentals- high due to “job growth”?  Really?

Inventory down

 

 

 

 

 

 

 

Demand for rentals- high due to “job growth”?  Really?

http://lansner.ocregister.com/2012/10/20/landlords-making-up-for-losses-exec-says/167125/

I recently stumbled across a great set of real estate/rental-related columns.  California’s Orange County Register runs this column by Jonathan Lansner (Lansner on Real Estate) that discusses everything from the dreaded shadow inventory (who’s afraid of the shadows?) to rental news.  I’m probably more of a trend analysis guy than I need to be- and I’m always looking for things around the country that might be heading my way, but anyway…

The thing that caught my eye the other day, though, was a quote that I’ll call…well, I’ll just call it crazy- ’cause that’s what I think it is.  Laura Khouri, president of Western National Property Management (which just so happens to be the 2nd-largest multi-family landlord in Orange County, CA) was giving her thoughts on why demand for rentals is high right now.

Khouri‘s rationale?  She said that demand is up because job growth is encouraging many young people to move out of their parents’ homes.

What?  I know some things are “different” out there in Californey and all, but I dare say a number of things are the same there as they are elsewhere.  Along these lines, it’s good that Khouri has her ear and recognizes that demand for rentals is high– with no end in sight.  What’s bad is that she believes some kind of job growth has young folks bustin’ out of their parents’ homes and into rental properties.

I’d like to believe “job growth” is the reason rentals are in high demand these days- I really would.  In the past, I’ve discussed my wishes to still believe in Santa Claus, The Easter Bunny and The Tooth Fairy– and “job growth” causing high rental demand is no different.

What is causing the high rental demand?  While the number of folks not wishing to buy has remained fairly constant, the number of folks losing their homes to foreclosure and unable to buy has risen dramatically.  Those folks “have to live somewhere” (or so I’m told)- and their new “somewhere” is a rental property.

Demand for rentals- high due to “job growth”?  Really?

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About Dennis Burgess

Dennis B. Burgess Property Manager Licensed Florida Realtor Dennis B. Burgess Licensed Florida Realtor/Property Manager 2016 ORRA Governmental Affairs Committee Chairman 2016 ORRA Property Management Council Chairman The Real Estate Firm of Orlando 7600 Dr. Phillips Blvd., Ste #146 Orlando, FL 32819 Cell: 205-445-4755 Office: 407-581-5550 Fax: 407-581-5551 dburgess@reforlando.com www.reforlando.com Twitter: @orlrentals Turning vacant into occupied, and "houses" into "homes"
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