Home News Desperate renters — not buyers — are facing bidding wars

Desperate renters — not buyers — are facing bidding wars

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Renters jumping into the heated housing market are overbidding on available apartments, showing signs of pandemic-era transactions and the death of months of free rent.

For example, a Philadelphia realtor Philadelphia Inquirer She “broke and cried with my client” after losing a potential rental property to someone who would be willing to pay $ 500 higher than the listed rental price.Los Angeles renters Los Angeles Daily News She forked more than $ 60,000 (one year’s rent) in advance to land in a five-bedroom home for her family after being defeated by two separate location offers.New York City tenants as well New York Times They overpriced “multiple rentals” before they could finally secure an apartment.

The bidding trend that pervades fierce competition for signing leases in some of America’s largest cities is Housing shortage And fast-Rent rise.. Some lessees can surpass the landlord’s asking price and secure their place in a frenzy, while others can lower prices or spend more than necessary. There is sex.

Realtor.com Chief Economist Daniel Hale said in a statement this month, “Whether renters have few options, but can handle higher rents and, in some cases, even ask the above questions. I’m proposing. “ After the real estate website publishes the data Median rents in 50 metropolitan areas across the country have been shown to reach $ 1,827 in April.

(Realtor.com is operated by Move Inc., a subsidiary of News Corp., and MarketWatch is a unit of Dow Jones, a subsidiary of News Corp.).

“”“The combination of high current home prices and low inventories makes home ownership difficult to use, pushing up rents for the elderly and high-income households.”


— Housing Research Joint Center

According to the Harvard Housing Research Center, high-income tenants are increasingly entering the rental market, partly due to rising costs for sellers. This means that they are traditionally competing with those who inevitably rent because they cannot afford home ownership.

“The combination of high current home prices and low inventories has made home ownership difficult to use, pushing up rents for the elderly and high-income households,” said the Joint Housing Research Center. Said in the January report..

“At the same time, the influx of high-income households into the rental market is pushing up rents, potentially reducing the ability of young and low-income adults to form rental households,” he added. “The question now is whether there will be enough affordable housing available to prevent this result.”

According to the country, there is a shortage of 7 million affordable homes for very low-income renters, who are disproportionately black, Latin, Native American and Asian. National low-income housing alliance. The organization attributed this shortage to a combination of systematic racism and income inequality.

Rents are skyrocketing, resulting in a 17% year-on-year increase in March. According to Redfin — One solution to avoid a bid war may simply be to stay in place.Landlord may be more forgiving With existing tenantsRedfin Chief Economist Daryl Fairweather told MarketWatch.

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