Here is the explanation offered by USA Today, along with our own analysis!

Industry analysts expect rents to increase by 4.6% nationally during 2013. Rents throughout the country saw an average increase of 4.1% during 2012. Long-range rental forecasts call for annual increases of 4% through 2015.

Rents are increasing for a combination of reasons. Rental demand spiked during the housing downturn as people lost homes to foreclosure or simply abandoned them. At the same time, construction of new apartments came to a virtual standstill.

Even as new construction picks up speed, household formation is growing, and in many markets, outpacing supply. Improvements in the economy have led to new household formation, unleashing pent-up demand. Household formation increased by 1.1% during 2012 and is expected to grow during 2013.

Columbus Economic Rebound Affects Rents

As the Columbus job market improves, renters who doubled-up in their household formations are increasingly willing to set out on their own. The increase in occupancy ratios gives landlords the confidence to raise rents. According to MPF Research, rents in Columbus OH jumped by more than 5% during 2012. This puts Columbus rental increases on track with market trends in New York, Denver, and Houston.

According to data collectors at the Department of Numbers website, Columbus rents have started to surpass mortgage expenses during the last quarter of 2012. After having a soft rental market in previous years, Columbus tenants may be surprised to find that the recent upticks in rents are not a one-time bump.

Columbus Renters Turn to Home Ownership

Single-family home prices are up, but still below the market peaks of yesteryear. With interest rates at near-record lows, more Columbus renters are discovering the value of home ownership! Are you ready to say goodbye to your landlord? We can help!

As your Exclusive Buyer’s Brokerage, we focus on helping Columbus home buyers! We will give you the market advantage you need to obtain the best home at the best possible price. If you haven’t already done so, please download our free e-book for immediate access to home buying tips and strategies!

When you are buying a home in Columbus, OH, be sure to have our professional representation! You will not pay any fees for our services, and we will be happy to explain how this works. Contact us for expert assistance!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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