A surge of renters around Jacksonville, Florida and the rest of the nation are leading to a drop in the number of rental properties available. While there are still plenty of foreclosures in Jacksonville to be had, the prices on rental properties are on the rise.
It is a matter of basic economic principals—supply and demand. Since 2008 and the onslaught of economic hardship in the United States, more people have turned to renting their homes as property ownership became less of a possibility for many people. The rise in Florida foreclosures contributed to this, as families, students and young professionals all sought temporary housing and support from rental property management.
Tough economic times make housing prices burdensome on many demographics of people, including home owners and renters alike. However, the level of hardship appears to be a bit higher among renters—especially for those living in urban communities.
According to some estimates, as many as half of all renters in the United States are burdened by their cost of living.
Being burdened by ones cost of living might sound like a subjective measurement—after all, wouldn’t we all be happy with less cost associated with living! However, this is actually measured pretty precisely. Renters are considered burdened when over 30 percent (so close to one third) of their monthly income is dedicated to rent alone. This doesn’t include other basic expenses, like utilities, phone, food and other self-care costs.
In 2011, the rate of vacant rental properties nationwide fell to the lowest rate in five years—approximately 7.4 percent. Less properties means less options for renters looking for homes, and less options means renters are being forced to pay more per month than they would feel comfortable doing.
While the cost of rental properties rise and renters are feeling more burdened, the number of homeowners feeling financially burdened thanks to their living expenses went down for the first time in five years. This trend shows the start of a widening dichotomy between rental property tenants and homeowners, and could be an indication to many renters that it might be time to explore home ownership.
Many renters are scared of home ownership because they think the monthly cost of living is much higher when you own a home, but this isn’t always true. In fact, thanks to the number of Jacksonville foreclosures and the rising costs associated with rental properties in Jacksonville, you might find that owning your own home comes with a lesser monthly output than your current rent.
If you are renting and are interested in exploring your options with home ownership, contact us. We’d be excited to discuss different property sales in Jacksonville that might be right for you.