Rental Statistics Report Released Shows Rent, Vacancy, and Saturation Rates All on the Rise
Grand Rapids real estate investors can breathe a sigh of relief as recent rental statistical reporting indicates that rent, vacancy, and saturation rates are all on the rise. This report of detailed market data provides unprecedented opportunities for investors as they make decisions regarding their Grand Rapids rental properties.
“Rental rates are up throughout the country, and we expect that trend to continue in the near future,” said Lukas Krause, Chief Executive Officer of Property Management Business Solutions. “There are a lot of economic indicators supporting that viewpoint, not the least of which is America’s continual shift toward renting.”
The report that was released shows a 5.4% increase in average monthly rates for the first quarter in 2015 from the same time period in 2014. All ten of the US rental regions have experienced an uptick in year over year rental rate hikes, with the Pacific and Northeast regions experiencing the highest gains, and Midwest gaining the slowest.
Vacancy rates through the end of the first quarter were also studied showing the average national vacancy rate rising slightly from the previous year. Michigan still has the lowest vacancy rate of 3.6% compared to a 5.7% national average.
Analyzing the nation’s saturation rate–the percentage of single-family homes being used as rental properties nationwide was found to be 23.4%.
Grand Rapids real estate investors should view this as good news as the demand for rentals rises, rental rates similarly increase which results in improved overall cash flow. With Michigan having such a low vacancy rate, reduced vacancy times experienced at rental properties will also increase investors’ bottom line.
If you are interested in having your property managed by Real Property Management Investment Solutions, have more questions, or just want to speak to one of our team members, then contact us online or call us directly at 616-419-8880 today!
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