A Rental Agency Survey reveals an Increase in the Number of South Flordians Renting Real Estate
KangaRent, a real estate brokerage specializing in residential rentals, recently conducted a survey of South Florida real estate agents last month in an attempt to reveal current trends in the overall status of the South Florida real estate market. The findings revealed a clear trend towards renting over ownership of real estate. The trend is likely a symptom of a cloud of overall hesitancy towards property ownership trailing the collapse. Considering the severity of the collapse, it is not surprising to find that many consumers in certain areas are plagued by a fear of foreclosure, unexpected job loss, and future economic insecurities and thus choosing to rent property rather than buy.
While news of increased home sales indicates that people are buying, a number of these purchases stem from the return of investor confidence rather than a desire for home ownership. The relative stabilization of the market and bottoming out of housing prices brings are incentives for cash buyers and investors to return to the market and begin to rebuild real estate assets. These purchasing decisions are usually fueled by the prospect of profits and financial securities that ease the uncertainties that still exist within the market. Many families buyer confidence can be disabled by continued presence of economic and real estate uncertainties and find renting a better decision for their financial sanity and security. Renting relieves the stress of finding a loan while credit is tied up in tight lending practices, but also the stress of building debt or having to sell the house should your situation change or a problem arise. Agencies like KangaRent also offer payment by credit or debit card allowing the rent to build credit while easing the feeling of Â“throwing money awayÂ” that often impedes renters.
In South Florida, these theories are backed by evidence of a trend disclosed by local real estate agencies revealing their growing demand for rental deals. 70 local real estate agents were surveyed by KangaRent and over 60% of them reported they are working with renters on a weekly basis. The survey also revealed that while 60% of real estate agents said there was a significant increase of renters from 2010 to 2011, only about 30% said it stayed the same. Further, 55% of agents also indicated that the majority of those renting were young families, while 42% said young professionals. Historically these two client subcategories have been large contributors to new home sales. Depending on how prevalent this trend is long-term, it raises the possibility for impact in the number of house sales in the area.
The movement in real estate demand towards renting provides raises concern for those trying to sell, but also offers them options. In fact, KangaRent urges property owners to hold onto their home and consider renting it if they are not under pressure to sell. Currently getting the price you need on your home continues to be a struggle and at this point in the timeline following housing collapse your home could prove to be a valuable asset. The demand for rentals is growing and the new clientele being brought in are potential high quality tenants making the stresses of being a landlord that more minimal.
KangaRent caters to both tenants and landlords and provides unsurpassed knowledge in all aspects surrounding residential rentals and offers their services free to renters. KangaRent is headquartered in Downtown at the Gardens mall in Palm Beach Gardens, Florida.Visit them atÂ kangarent.com