Rents Will Continue to Rise

According to a recent report by CNBC, renters nationwide (including the Austin area) will continue to see rising rents. They quoted a Harvard study which stated that even if income levels and rents increase by 2% a year, that renters will still see rent increases. The reason, more folks are deciding to rent vs. buy. The nation has more renters today than any other time in our history and construction for rent property (namely apartments) can’t keep up with demand. I see our whole culture as changing from young folks getting married and starting families and then going out and buying a home to raise those kiddos, into a culture where many young people prefer to remain single or co-habit a rental. Similarly, many retired persons are cashing out of the home they have owned for many years where they raised a family, and moving to more favorable climates that have amenities (like the Austin area).