Bidding wars aren’t just for buyers anymore. Diana Olick writes over at CNBC that bidding wars are becoming more common in the rental home market as demand for apartment and single-family rentals are surging and outpacing supply… (CNBC)
Why is this happening? Two main reasons…
- As the economy improves, workers are moving out of shared living situations and looking for their own homes.
- The housing market is so expensive right now that many would-be buyers have been prices out forcing them to rent instead of buy.
SUPPLY & DEMAND: As demand surges supply is struggling to catch up. This means higher prices. “In July, rents nationally rose 7% year over year for one-bedroom apartments and 8.7% for two-bedroom apartments.”
NOTE: This, of course, is all happening along with the eviction moratorium which is depressing inventory levels.