Yes, It Is Still Cheaper to Rent Than To Buy…
Last week, Orange County was named as the 7th Priciest Metro Area in the nation. The survey, published by the National Low Income Housing Organization listed the average rent of $1,550 for a 2 Bed/2 Bath apartment home as being the 7th highest nationwide.
In light of our current economy, this news bodes well for apartment owners. While home values have plummeted, the decreased Real Estate values still have cash-strapped renters priced out of the market to buy. That said, with responsive and proactive management, landlords should be able to keep their residents happy.
Just as market values are driven by a property’s location, the demand for rentals in an area is also dependant on the property’s location. As the owners and managers of OC multi-family housing, we enjoy the benefit of providing housing that is very much in demand. What’s more, there is not a lot here and not many places to build more (apartments, that is).
While there is the idea that the renter can simply “move where its cheaper”, the likelihood is that the renter will stay put. After all, it is cheaper to rent than to buy, at least in Orange County.