Home News Bidding Wars’ Spread in Rental Market Flummoxes Tenants

Bidding Wars’ Spread in Rental Market Flummoxes Tenants

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The rent bidding war is nothing new to the growing number of New York City cities. General In the last few months. But now, in other cities, the competition that was once left to home sales is seeing a similar surge.

Agents in cities such as Chicago and Atlanta have seen unprecedented volumes of offers that exceed rents, the Wall Street Journal reported. This has led to a bidding war as prospective tenants try to secure a lease.

Record home prices, low inventories, and soaring mortgages have led many to look to rent instead of buying. The result shocked those who did not know to offer to pay a higher price than the price listed on the rental property.

“We didn’t even know you could do that,” a renter in northern Virginia told the journal.

There were other carry-overs from the housing market, including emotional complaints in the form of letters and solicitations for nominations from former landlords. (In some areas, the so-called “”LoveletterThat is because it can lead to discrimination against housing. )

The bidding war has led to higher rents and is creating a market for digital tools. In Chicago, landlords use Brixbid to promote rental competition. According to the website’s founder, some apartments on the site are rented at a price 15 percent higher than the asking price.

Bidding war Become normal At the sun belt. Rents on the outskirts of the region are leased 35 percent higher than required.

Competition has a significant impact on the rental market.Median rent nationwide last month Over $ 2,000 This is the first time, according to Redfin. Median rent of $ 2,002 in May was up 2% from April, up 15% year-on-year.

People who decide to rent or buy receive various messages. Rents across the country are record high, and bid wars are on the rise, but house prices remain high. An analysis by John Burns Real Estate Consulting found that he owned a home in April. It costs $ 839 more per month More than renting, it has increased from the slightest difference a year ago.

The cost difference between owning and renting is nearly $ 200 larger than at any point in the century.

[WSJ] — — Holden Worther-Warner

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