Monday, October 17, 2011
The New York Times reports that rents are rising across the city:
Despite record low interest rates, tightened lending standards have denied mortgages to many people who might have succeeded several years ago. With few qualified buyers and a stubbornly high unemployment rate, new home prices across the country have stagnated or fallen.
“There are new households forming all the time,” Ms. Hannigan said, “and people need a place to live, so given these circumstances, it is not surprising rents are rising.”
A little research shows that the problem isn't confined to New York. According to USA Today, " Nationwide, rents are expected to rise about 4% this year, Humphries says, and will also rise in 2012. Strong demand is driving rents up as homeowners lose homes to foreclosure and become renters. Skittish consumers are also delaying home purchases, given concerns about the economy."