One negative result of a slower sales market is it means people who can’t afford to buy any longer (due to higher interest rates) end up renting, instead.
That puts upwards pressure on rents.
Apartment rents rose faster during the first quarter than they have in five years as rising mortgage rates pushed potential buyers out of the market.
The average rent was a record $952 a month, a 5 percent gain from a year earlier and the largest percentage increase since 2001 when rents rose 8.3 percent in the first quarter.
The top rental market in the country is Miami, where the vacancy rate is 1 percent, according to M/PF YieldStar, a Carrollton, Texas-based research company. Fort Lauderdale, Fla., is No. 2, at 1.7 percent. Cincinnati and Cleveland are at the bottom of the company’s ranking of 57 markets, with vacancy rates of 9.5 percent and 9.2 percent, respectively.
Source: Bloomberg News, by way of Realtor.org