Traditionally, it has been much easier to rent than buy. Purchasing a house is a long and tedious process, and the deal usually depends on many contingencies. Recently, however, it has been extremely difficult to find an affordable place to rent. Obviously the area in which you are looking to rent plays a huge part in this. Every market is different. But many renters, especially along the Jersey Shore, are finding it very difficult to find a place to live.
There are several reasons for this:
Low Inventory
Hurricane Sandy devastated the Jersey Shore. Many people are still waiting on money to rebuild their homes, which leaves an entire "shadow" inventory of homes that are vacant and uninhabited.
High Prices
This ties directly with low inventory. When the supply of homes for rent is low, people are going to charge more money for rent. Many apartments, condos, and homes are entirely unaffordable for families. This is especially true with single family homes. It is not uncommon to see a 3 bedroom home for over $2,000 a month in the Middletown area and along the Jersey shore.
High Demand
Due to the loss of homes in Sandy, there has been an unusual amount of renters in the area. People that lost their houses in Sandy were forced to rent until they received Federal Aid money. The Jersey Shore and the surrounding areas are also very desirable places to live. Redbank was just voted one of Americas best small towns, and all of the areas are close to the beach and close to NYC and Philidelphia, as well as Atlantic City.
Mortgage Trouble
Many perspective buyers are not able to obtain a mortgage due to new mortgage regulations enacted by the Dodd Frank Financial Reform Act, as well as poor credit history. These potential buyers are forced to rent, which in turn increases the demand for rental properties as well as pushes the price of rental properties up. This directly affects both the demand and the price of rentals.
First Time Home Buyers
The average age of a first time home buyer is their early thirties. The sad truth is both high school grads and even college grads cannot afford a home or qualify for a mortgage because they either do not have a high paying job or they are saddled with student loan debt. This has forced them to rent, further increasing the demand and price of rental homes.
My Advice to Renters
Together all of these variables have led to a low inventory, high demand, high price rental market. If an apartment or home is priced right and it is in a desirable area, there is a high possibility it could be on and off the market in as little as a week. If you are looking for an apartment, and you see something you like, ACT FAST. This is not the type of market where you can think about it for a couple of weeks. The house you are thinking about today and trying to rent tomorrow, someone was thinking about yesterday and is renting today.
There are several reasons for this:
Low Inventory
Hurricane Sandy devastated the Jersey Shore. Many people are still waiting on money to rebuild their homes, which leaves an entire "shadow" inventory of homes that are vacant and uninhabited.
High Prices
This ties directly with low inventory. When the supply of homes for rent is low, people are going to charge more money for rent. Many apartments, condos, and homes are entirely unaffordable for families. This is especially true with single family homes. It is not uncommon to see a 3 bedroom home for over $2,000 a month in the Middletown area and along the Jersey shore.
High Demand
Due to the loss of homes in Sandy, there has been an unusual amount of renters in the area. People that lost their houses in Sandy were forced to rent until they received Federal Aid money. The Jersey Shore and the surrounding areas are also very desirable places to live. Redbank was just voted one of Americas best small towns, and all of the areas are close to the beach and close to NYC and Philidelphia, as well as Atlantic City.
Mortgage Trouble
Many perspective buyers are not able to obtain a mortgage due to new mortgage regulations enacted by the Dodd Frank Financial Reform Act, as well as poor credit history. These potential buyers are forced to rent, which in turn increases the demand for rental properties as well as pushes the price of rental properties up. This directly affects both the demand and the price of rentals.
First Time Home Buyers
The average age of a first time home buyer is their early thirties. The sad truth is both high school grads and even college grads cannot afford a home or qualify for a mortgage because they either do not have a high paying job or they are saddled with student loan debt. This has forced them to rent, further increasing the demand and price of rental homes.
My Advice to Renters
Together all of these variables have led to a low inventory, high demand, high price rental market. If an apartment or home is priced right and it is in a desirable area, there is a high possibility it could be on and off the market in as little as a week. If you are looking for an apartment, and you see something you like, ACT FAST. This is not the type of market where you can think about it for a couple of weeks. The house you are thinking about today and trying to rent tomorrow, someone was thinking about yesterday and is renting today.