A Ton Of Landlords Are About To Raise Rents This Year

Throughout the Fed's mission to bring inflation down to its 2% target rate, housing prices have been one of the areas where price growth has remained the stickiest.

Now the central bank plans on cutting interest rates amid a slowdown in the labor market, but this could also lead to inflation in the housing and renter markets. 

More than 75% of landlords are planning on increasing rents in the next year, according to a recent survey from ResiClub. With mortgage rates set to come down, landlords also displayed more demand to purchase properties in the next year, with 60% of respondents saying they will likely buy at least one property in the next 12 months, while only 39% of landlords said they will likely sell at least one property.

See Also: Homebuyers Get A Break – Redfin Reports U.S. Homebuyers’ Monthly Housing Payments Drop A Whopping 5.85% From April Record High To July

In the survey, conducted among more than 200 single-family landlords, more than three-quarters said they planned on raising rent in the next 12 months. Out of those 76%, nearly half said they plan on raising rent prices by more than 4%.

On the national level, 41% of landlords said they planned on raising rent between 1%-3%. Twenty-four percent said they planned on raising rent 4%-6%, while 11% said they planned on raising rent by 7% or more. Only 22% of landlords said they planned to keep rent prices steady, and even fewer plan to cut rent.

Most landlords surveyed said they expect interest rates to fall in the next 12 months, with the majority expecting the rates to decrease by 0-1%. Most landlords also expect the price of housing to increase in the next 12 months as mortgage rates come down.