US Rents Are 'Too High', According To Zillow

Thinking of renting? Take time to read this first.

An article featured on cnbc.com reported on the rise of renting a home in the U.S. Zillow chief economist Dr. Svenja Gudell was quoted as saying in a statement "Rents are crazy right now...Unaffordable rents are making it hard for people to save for a down payment and retirement." Rents as well as occupancies are currently at its historic highs. The ongoing construction of multifamily homes, like that of apartment buildings, fell into next to nothing despite the housing breakout news. Also, new units are recently meeting with the pent-up demand.

It's like this: A bigger city equals an even bigger problem. Home sales inventory unlikely fell in 19 of the U.S.' largest metropolitan areas. Supplies are in the lower price ranges, making it pretty difficult and challenging for already struggling first-time buyers to venture into home ownership, according to the same article. 

Another article on wsj.com reported on newer households being more likely to be just renters than buyers, eventually raising rent prices. Though the rents are still rising rapidly in all apartment classes, the usual influx of most luxury units are starting to slow down rent hikes in this category, while the group of affordably-priced apartments are quite having an opposite effect.

Still in the same article, Ryan Severino, Reis Inc. Senior economist was quoted as saying "Everybody and their mother is out building these Class A apartments...Nobody is building B and C apartments." No wonder rent prices go higher by the day.

An article featured on usnews.com also mentioned the rent shift that might continue during the next fifteen years as per a report made by the Urban Institute. Still, the recession's effects , cultural changes to home ownership, student loan debts, and possible delays in marriage as well as childbearing will be part of the challenge, as stated by Dir. Laurie Goodman of Urban Institute's Housing Finance Policy Center.