This is good news for real estate investors. As rental prices rise, the cost of owning a home may eventually be less than renting, leading more people to buy in the future.
La Jolla, CA (Vocus/PRWEB) April 12, 2011
P.S. Platinum reports that it has seen an increase in La Jolla rentals by summer vacationers. The company also reports a rise in off-season rentals, and leased three properties, ranging from $3,000 to $13,000 per month, the day they became available on the market. With recent data showing an increase in rental rates, this statistic shows that qualified tenants who formerly owned are choosing to rent properties for various reasons.
The fact that more people are renting can be attributed to an ease in the recession. The higher pace of rentals also means young adults are seeing more stability and are able to move out on their own. However, the La Jolla real estate company says foreclosures continue to be high. This brings more renters into the market, looking for an affordable alternative to home buying.
“The increase in rentals in La Jolla is good news to rental owners and others who lease their properties as vacation rentals,” said Dane Soderberg, VP and Broker Associate of P.S. Platinum. “This increases buyer confidence as home prices could be lower in the future and more affordable homes mean a more stable situation for the real estate market.”
Vacancy rates for rentals, including La Jolla vacation rentals, are continuing to lower. In general, they have dropped more than 10% for the first time in three years, and if the trend continues, rental prices will go higher. Owners and landlords lowered rental prices during the recession. The combination of more young people renting and others who have lost homes due to foreclosure looking to rent, means apartment developers might not be able to keep up with the demand.
The increased rate of La Jolla rentals, and that seen in Phoenix, Las Vegas, and other parts of the country shows that conditions are prime for prices to rise. P.S. Platinum which offers rental properties in La Jolla, Del Mar and throughout the San Diego area has seen an increase in rentals across the board.
“This is good news for real estate investors. As rental prices rise, the cost of owning a home may eventually be less than renting, leading more people to buy in the future,” added Soderberg.
For more information on P.S. Platinum and its catalog of real estate properties for sale and to rent, visit http://www.ljplatinum.com or call 858-337-1417.
About P.S. Platinum Properties
P.S. Platinum is one of the leading agencies for La Jolla real estate, and is anchored by the expertise of VP and Broker Associate Dane Soderberg, a native of the area since 1978. The company focuses on luxury homes in La Jolla and along the California coastline and employs agents with inside market knowledge so that home buyers and sellers have a unique advantage in the industry. Its catalog includes oceanfront and village homes, resort properties, equestrian estates, and yachting accommodations.