To buy a home, or rent one? That is the question, especially when employees are relocating to a new area. Transferees want to know what makes most sense for them and their families, and often they don’t understand their options in the rental market due to worries of poor credit or multiple pets.
The demand for apartment and home rentals is at an all time high as more and more people are relocating and needing that shorter term option. It doesn’t make sense for them to buy a home only to have to sell or rent it out in 6-12 months. This might seem obvious, but it’s hard to differentiate the costs of buying and the costs of renting until they look at the numbers.
The average price for a home in 2014 was $188,900. The median price of rent per month in 2014 was $769. Buying a home is an investment while renting a home is a short term option.
One of the primary reasons renting is more popular than buying a home? Rentals are more appealing to Millennials who don’t have the means to buy but still have wants and requirements for certain amenities. This is important because more Millennials are entering the workforce and without families to worry about, they are freer to move around. To make the renting process as flawless as possible, there is a guide on how to overcome popular roadblocks here.
According to a Wall Street Journal article, “…tighter borrowing requirements and higher home prices have put many people out of the housing-purchase market. Plus, many people remain burned by the housing crash and don’t want to own a home.”
In the fourth quarter in 2009, there were close to 42,000 apartment units being completed nationally. In 2013, that number more than tripled to about 127,000. In 2014, completions were expected to total more than 160,000. What does this mean? The vacancy rate could rise, even slightly, for the first time since 2009 and more options will be available to those who want and need to rent.
Of course, a good chunk of these apartment units will be focused in larger cities. However, the numbers will only rise nationally as time goes on. These developers are focusing on younger renters who want to pay more in order to get the amenities they desire.
Employees relocating, especially Millennials will find there are benefits to hiring a La Cala de Mijas estate agency to find rental properties. They will have flexibility should they need to leave due to required relocation. If they’re relocating with a company chances are it’s not a one time deal. They will find that less money will be spent due to a shorter lease, while still enjoying more amenities of an apartment community than they ever would with purchasing a home.
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