Report: Rental growth to experience gains by end of 2011

The rental real estate market is expected to experience gains during 2011.According to a recent report conducted by the CoStar Group, landlords should expect a significant amount of rental growth by the end of 2011, as vacancy rates decline and real estate demand increases.Furthermore, rising employment figures will contribute to the health of the rental landscape. Due to the greater amount of jobs available, many of those that relied on others for housing, such as college grads, can now begin moving into their own residence.CoStar estimates that the rental landscape will experience positive growth during 2011 after a long period of losing money, and will peak at a 6 percent annual growth rate by 2014.While the near future is optimistic for rental market, the long-term success is less certain.”While it is the negligible new supply that is allowing retail real estate to turn the corner, the future depends on job and wage growth levels,” said Chris Macke, senior real estate strategist for CoStar Group.For the time being, however, areas with increased employment opportunities might experience the greatest upswing in rentals. Thus, the Atlanta and Houston real estate markets could be in line for significant gains soon. ?Courtesy of 2M Realty News

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