Information and events for homeowners, travelers and anyone who enjoys the coast.
Rising interest rates spark concern over not only new builds and ability for owners to purchase, but what the impact will be on rental rates. These two article (below) about the 7 year peak in mortgage lending rates cites what has happened when rates rise, essentially new construction halts while the market regulates. With stable demand and a thriving economy, I would expect rental rates only to rise.
The lag in new construction traditionally drives home prices up by approximately 8 percent. Read the article here on FreddieMac.com. What's not discussed is the rising costs of construction that will escalate, the increased cost of resources and population growth rates, demand for rentals are sent to increase. The article details how future increases would affect various market participants—borrowers, lenders, real estate agents, and home builders.
Industry statistics from several sources in this very well done report from VRMA.org displays a detailed graphics for multiple market segments. And, it's especially good for the southern markets!