In summing up 2007’s rental housing market for apartments and single family residences, the final numbers are up. While the actual number of properties rented remained fairly constant when compared to last year, there was a considerable increase in rents. There were 144 properties that rented this year versus 141 in 2006, however the average price jumped to $4,105 up from $3,531 in 2006. This increase represents a 16.2% appreciation rate. The median price this year was $3,350 up from $2,800 last year or 19.6%. In addition, the average time it took to rent a property was 88 days. Some of you may want to consider purchasing rental properties as a long term investment as renters delay buying and new households turn to rentals. However, the same rules of real estate apply to rentals………. Location, Location, Location.
5 comments:
Will the housing market have an effect on rental rates?
If sales of homes slow down, it should increase rental rates even more, however, that really was not the case in 2007 because even though rental prices rose, the number of sales in New Canaan actually increased and so did the median and average price of homes.
Denise
Looking at the nytimes.com listings for rentals (and comparing the number of available rentals to number of homes for sale) New Canaan has a unproportionally low number of rentals (only looking at *houses* for sale and *houses* for rent, to get comparable numbers) - compare with Greenwich.
Do you know why? Is it just that they are not listed there or is the numbers the same in the MLS?
The actual numbers for rental properties on the market in New Canaan is 58. It is usually a 3 to 1 ratio of homes versus rentals.
This data is pulled off Promatch, the New Canaan Multiple Listing Service, as of today. For some reason The New York Times is not pulling the data. If you were interested in the details of the properties, you might check Raveis.com which lists 40 rental properties in New Canaan as of today. The reason for the difference is that Raveis pulls their data from CMLS not from Promatch and not every property in New Canaan is listed on CMLS. Promatch MLS has more accurate and comprehensive information for New Canaan MLS data and is the source that I use.
Denise
Thanks for the helpful info, Denise. I'll be following the blog over the next few months. I hope you'll include info on condos as well.
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