Rent Expected to Rise in 2015

Rent Expected to Rise in 2015 (Source:  Pixabay CC)

2014 brought about a definitive decrease in investment purchases - a 7.4% decrease, in fact, which perhaps directly correlates with a diminishing supply of distressed inventory available for profit gain. 

In other words, investors just aren't investing in new properties. So how are they going to make more money?

Why, by raising rent on their previously existing properties, of course!

It isn't a big secret. A recent article from Bloomberg Business gave direct insight into the minds of the CEOs of major investment firms, and it doesn't bode well for renters:

“We are focusing aggressively on rent bumps,” American Residential Properties CEO Stephen Schmitz said during a panel discussion. “There’s a supply imbalance in some markets. The same thing that keeps occupancy high also drives rents.”

Rent Prices to Inflate 4-5.7%

In 2015, it is predicted that renters will see a 4% price increase on renewals, and up to 5.7% for new tenants.

Morgan Stanley analyst Haendel St. Juste stated that investors are collectively focusing on "optimizing revenue, compared to getting heads in beds."

Escaping the Inflation

What should renters do to get out of the frustrating cycle of rent renewals and increases? It may officially be the time to become a homeowner. In Chicago specifically, we know that it is significantly more affordable to buy than rent. Sit down with a trusted real estate agent to see if there are options out there for you to become a homeowner for the first time.

Looking to buy? Unsure whether homeownership is a viable option? Send us an email or give us a call! We'd love to help you with your process.

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