The rental apartment business has been particularly successful in 2019, with the value being rediscovered in this previously challenging market. In this article, we explore the trends in the rental market so far and how these will affect the year to come.
Growth of the Rental Market in the Last Few Years
The latent demand for rental apartments in major cities is tremendous, and in spite of the real estate market for property sales slowing down significantly over the course of the last 12 to 18 months, rent prices have not been affected at all.
As it happens, it was observed that while the property exchange market has been cold in most states, the demand to rent furnished apartments in Chicago, NYC, Miami, Los Angeles, Phoenix and most other major metropolitans has only increased.
What is Driving Growth in the Rental Market of US Real Estate?
There are several factors responsible for the growth, which ranges from the ease of availing rentals as compared to buying a property, to the growing need for rented properties in the corporate sector.
The Demand for Premium, Corporate Apartments
In major commercial cities such as Chicago and New York, the demand for corporate rentals is tremendous at the moment, and this looks set to swell more in 2023 as companies are increasingly looking to offer clients a personal service even in today’s connected digital market.
On taking a look through the options to rent furnished apartments in Chicago, as offered by companies like Blueground, it is easy to see that premium, furnished apartments with gyms, pools and other modern amenities are answering new demand within the corporate renting market.
You can find more information here about Blueground and the various options they have to rent furnished apartments in Chicago located all throughout the city. As should be obvious by looking at these, there is actually a booming segment for luxurious apartment rentals in the main US cities right now.
Blueground’s furnished apartments in Chicago offer a premium housing option for those looking to rent a centrally located home with all of the furniture, linens and cookware provided. Their reimagined corporate housing experience is supported by a Guest App and flexible lease terms should tenants choose to change locations. For more information, you can visit this site.
The Fear of Debt is Driving Up Rental Prices
A legitimate question to consider would be whether it is cheaper to buy or rent. As it happens, there are multiple advantages to both options, although, in light of the recent economic conditions and changes in real estate prices, seen all over the globe and not just the United States, rentals are indeed presenting themselves as much more feasible and practical options.
Out of the many reasons why renting is starting to make more sense to the average US citizen with every passing year, perhaps the most profound one is the fear of being under crushing debt. The fear is legitimate, since the down payment that must be paid during a property exchange is quite heavy, even if it’s not the most extravagant property around. This puts them under debt, in addition to the responsibility of paying the monthly installments.
The fear of losing the property and the down payment is a legitimate concern for a lot of citizens with uncertain incomes, which makes renting a luxurious apartment a more feasible and safer choice for them than buying even a moderate home. At worse, failing to pay rent will mean that they may lose a portion of their deposit and would have to find new housing options, but compared to losing a huge down payment and the house they thought they owned, it’s a better proposition for a large section of the population.
Temporary Housing Feels More Practical in Today’s Setting
Times have changed, and people move around more due to work and for personal reasons now than they did twenty years in the past. As a result, professionals working in the private sector may prefer to rent furnished apartments in Chicago, rather than buy one outright, especially when they do not even know where their career will take them next.
Increased Demand Is Pushing Up Construction
As increasing numbers of people seek out rental accommodation and more millennials look to buy their own homes, there’s been a boom in the construction of new properties in the US over recent months. The majority of these properties will be part of the growing rental market at some point during, meaning that there will be an even greater variety of properties on offer over the years to come.
Although a lot of restrictions have been imposed on immigration as of now, most of them are on illegal immigration, as well as policies against legal immigrants getting green card status. Therefore, it would be safe to state that legal immigrants will continue to bolster the rental market for the foreseeable future as well!