Why are rental prices so high?
Recently someone complained about the rental prices being so high right now. I attempted to explain that there are many factors that play into the rental housing market. One reason is that an owner must be able to cover their mortgage payment. Housing prices have gone up, interest rates have also gone up, and this has created the need for owners to cover their costs. Besides the loan payment, landlords must also factor in the cost of property taxes, HOA fees, and home insurance. Another reason for the higher rental prices is supply and demand. There are more people wanting to rent homes than there are homes available for rent. This can cause the prices to rise. Until home prices come down, interest rates lower, or both, rental prices will likely stay high. Its a balancing act between many factors. Pinyon Properties Real Estate is your real estate one-stop-shop!
