Still More Rentals Needed

We are starting to see the effect of slightly rising interest rates and rapidly rising home prices on the Greater New Haven real estate market.  First-time homebuyers, many of whom have burdensome student debt, are beginning to be priced out of the tight sellers' market we are currently in.  More houses are going under contract and then returning to active status. Many homes now sell without contingencies, but those go to buyers who know that they will have the cash, or the easy availability of mortgage funds, to close.  

Houses going back onto the market are often ones where the buyers need to sell, or be qualified, before they can lock themselves into a contract.  Sometimes they don't qualify for the lowest rates, or those rates have risen.  Sometimes they don't calculate fees, insurance, and other costs.  Sometimes they just get cold feet.  When that happens, what will they do?

They will continue to rent.  As we have discussed before, there seems to be a bottomless demand for rental housing in our market.  Some is caused by one of the scenarios above.  Some is caused by COVID, because student housing cannot be as dense as it used to be.  Some is demographically driven.  Whatever the reasons, people are still filling up what's out there.

That's an opportunity for investors and developers.  Buy a home, convert a building, or build from scratch.  It's a good time to go into the rental market as an owner, and make a living from the proceeds.  We're here to help!