American Property Boosted by Record Rental Demand
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According to a report by the Weiss Research group demand for rental accommodation has reached an all time high in America. The report said:
'Now is possibly the best time to buy and profit from soaring rental demand and rapidly advancing rental yields. Never before in America's history has the real estate rental market appeared so strong. Vacancy levels are falling across the whole of America at record rates, and in parallel to this massive upside pressure that is being exerted on supply, the rate at which rental rates are rising is dramatic.'
An average 5.3% rental rate increase is predicted across the whole market for 2008 according to the American Association of Realtors.
DSR's head of international research Liam Bailey, gesticulated at potential causes for the massive surge in American rentals:
"The increasing and massive volume of home foreclosures in America is forcing people into rental accommodation, the increased difficulty in obtaining mortgages is keeping would-be home-owners in rented accommodation for longer, and there are also growing numbers of people taking rental accommodation while they wait until prices have finished falling."
According to analysts prices have fallen as far as they are going to and will bounce back by over 10% this year in Tampa, the site of DSR's newest American property: the Slade development, in the hip Channelside district.
The Slade offers 1 bedroom apartments from just £144,000 and with a 6%p.a. rental guarantee for the first 2 years, 2 years which are also tax free, and maintenance costs are also covered by the developer for the first 2 years. The Slade also has excellent facilities including a 2 level fitness suite, infinity edge pool, salt-water pool, and roof-top sun deck.
Tampa shares similar factors that are creating massive demand in the rental market, but it also has a massive tourism industry and is currently a hot-bed of new employment opportunities. This is causing massive increases in the population through people moving from other less opportune parts of America. This will all help to ensure that the Tampa rental market remains strong long after the credit crunch has died down.
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