Rental market boost bodes well for housing market recovery

Vicki Johnson | Vicki Johnson Real Estate

Rising rental prices bode well for housing market recovery.

By Vicki Johnson

The real estate market has taken an undeniable hit in the wake of the recession; but a recent report from the Los Angeles Times notes a silver lining in the form of thriving rental activity – and with it, a sign of hope for the long-awaited housing market recovery As home prices remain in decline and potential homeowners struggle to secure mortgage loans, rentals remain an attractive option for many would-be buyers. As Zillow chief economist Stan Humphries tells the Times, “It is an issue of supply and demand,” with the foreclosure crisis operating as “a giant engine converting owner households into rental households.” This in turn has spurred a rise in rental prices – and subsequently, an uptick in investment activity on the part of hedge funds, government entities and even individual buyers that promises to fuel market stability.

Zillow estimates show average national rental rates rising 3% between January 2011 and January 2012, with concentrated increases falling in areas of the country with stronger than average job growth. According to Esmael Adibi of the Chapman University A. Gary Anderson Center for Economic research, job growth creates household formation, which in turn fuels housing demand. Therefore, as San Diego employment numbers slowly rise, so too will the need for rental and real estate inventory. And while this may result in unpleasant increases in rental rates for some tenants, it will also spur the investment activity needed to get foreclosure properties back on the market in the form of rental units – a necessity for the equilibrium required to encourage broader recovery overall. In addition, individuals and families with the means to secure a mortgage will see buying as both more attractive and affordable in light of rising rental rates, adding yet another boost to the housing market.

Expert guidance amidst market changes ensures smooth transitions and great values

Here in San Diego, our enviable proximity to coastal cities, urban centers and thriving universities contributes to diverse rental and real estate options for buyers, sellers and investors alike. As an experienced Coldwell Banker real estate agent currently serving La Jolla and surrounding San Diego communities, I am intimately familiar with all of these markets – and I can offer clients the guidance, marketing expertise and negotiating savvy to maximize value and ensure a smooth transaction from start to finish. Whether you are looking to rent or buy a home, or to purchase investment property, I can help you find the right listings and make financially healthy choices for the long haul. To learn more, peruse La Jolla real estate listings or schedule a consultation, visit me online:

Related posts:

  1. To sell, or not to sell? An introductory guide to selling versus renting out your home in today’s real estate market
  2. Mitt Romney, La Jolla, and Election 2012: how the GOP candidate’s political progress might change local real estate and the surrounding community
  3. Natural probiotic supplements and improved immunity: an introduction to the powers of beneficial bacteria
  4. Boost in residential construction business complements home remodeling trends for 2012
  5. Justin Timberlake vs. the Marlboro Man: the changing face of male self-image in America

Short URL:

Posted by Social Media Staff on Mar 25, 2012. Filed under Columns, Sponsored Columns, Vicki Johnson. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Bottom Buttons 1

Bottom Buttons 2

Bottom Buttons 3

Bottom Buttons 4

Bottom Buttons 5

Bottom Buttons 6

RSS North Coastal News

  • Man pleads guilty in fatal Del Mar hit-and-run case April 17, 2014
    A man who drove drunk and struck a marine biologist in a crosswalk in Del Mar, then fled the scene, pleaded guilty April 16 to gross vehicular manslaughter while intoxicated and a hit-and-run allegation. Christopher ``Chip’’ Stockmeyer, 41, faces between nine and 15 years in prison when he is sentenced June 20 for the March 28 death of Rachel Morrison. […]
  • Del Mar Powerhouse 10U Champions April 17, 2014
    The Del Mar Powerhouse 10U team played two pool play games and two elimination games to go undefeated in the Triple Crown Sports San Diego Open and win the Division 1 Championship. The boys showed great determination and fight to come away victorious in elimination play and battle for the win with a one-run margin of victory for both semi-final and champions […]
  • Canyon Crest girls crack top three at Arcadia, set new school record April 17, 2014
    Several young women runners from Carmel Valley high schools raced well in the Arcadia Invitational on April 11-12 in Los Angeles. Arcadia is considered to be one of the most competitive high school track and field meets in the country, drawing both national and international athletes to compete. […]