Rental Demand on the Rise in Palm Beach
The housing shortage in South Florida is impacting all facets of the local real estate market, and rental properties are increasingly in high demand as many local residents are unable to qualify for financing or cannot compete with bids from outside investors on Palm Beach homes.
According to a recent report issued by CoreLogic, rental demand in Palm Beach increased by 12% in August, which has put it at the top of the list for major metropolitan areas nationwide for growing demand. West Palm Beach ranked eighth in the nationwide survey. They survey concluded that areas among the hardest hit by the housing crash are seeing the biggest increase in demand for rental properties.
“Single-family rental has been a neglected segment in the past,” the CoreLogic report stated. “However, a weak labor market, tight underwriting for owner-occupied properties and elevated foreclosures will ensure continued strong demand for single-family rentals.”
In response to the increased demand for rental properties, investors have flooded the Palm Beach real estate market looking for Palm Beach short sales of single-family homes or apartment buildings that could be used as long-term investments. They are looking to cash in on the fact that fewer people qualify for loans than in the past, and many people who are new to the area simply need a place to live since it is becoming increasingly difficult to purchase a home in South Florida due to increased competition.
Consequently, the shortage of housing is having a similar effect on rental prices as it's had on the prices of single family homes: They're going up. However, the influence of investors has made some apartment units more desirable since they are taking the time to renovate the properties before putting them on the market.
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