Yun: Rental market on the rise, possibly inflationary effect
In recent comments, National Association of Realtors (NAR) chief economist Lawrence Yun had some good news to report. The commercial market, said Yun, appears to be stabilizing, with vacancy rates expected to drop over 2011. Yun’s comments on the residential market were not exactly upbeat, but he did note a slightly improving economy will continue to affect rental rates in 2011. He also hinted at the expected inflationary effect of this in this item on Marketwire:
“Apartment rents could rise by 1 to 2 percent in 2011, after having fallen in 2009 and no growth in 2010,” Yun said. ”This rent rise therefore could start to force up broader consumer prices as well.” He noted that the housing shelter cost of primary rent, and owner’s rental equivalence, is the biggest component in the Consumer Price Index, accounting for 32 percent of its total weight.
