Why Are Rents Going Lower, Nationwide?- by NEIL SISKIND

The good thing about analyzing housing is that it’s sort of binary. People either own or rent. Period. There are reasons for people to own vs. rent, such as interest rates, incomes, and whether they are single or married.

Even while home prices are high, rents are declining. What is the reason?

Is it because of the over-building of condominium apartments, thus creating rental pressures on landlords?

Or, is it because people are buying instead of renting?

We know that supplies are low. So many new buyers, by definition, are not entering the market. Thus, it is not all the buying that is pushing down rents.

So, it must be the former. There is too much investor-owned supply which is putting pressure on rents.

If oversupply is a problem, then it will keep people renting, because it makes more financial sense. Further, an oversupply of housing, where investors are owners, can indicate housing bubbles. Also, if people are renting vs. buying, and rents are still declining, it is a bad sign for the housing market if people find renting to be a better deal. That can only lead to housing price declines. Again- it’s supply and demand. The supply for rentals is plentiful- and the demand to buy is, therefore, shrinking.

Rental properties and owner-used properties will, both, suffer from the over-building of housing. User-owned homes can stay strong for a while, but, if wages don’t rise housing prices can not rise. Eventually, as interest rates rise, sales prices must decline- especially for investors whose prices are not rising and whose rents are not rising. They will want or need to sell. And these things can create domino affects.  The Fed seems determined to get housing prices back to an equilibrium so that people can and will sell and buy homes.

 

 

Neil S. Siskind, Esq., President
The Siskind Law Firm
Tel: 646.530.0006

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
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Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
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The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.

Neil Siskind, Founder, “National Fatherhood Day” – March 29th

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To encourage recognition of the needs of boys and girls who are living without fathers or father-figures in their lives.

Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®

You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.

Neil Siskind’s Volunteer Work:

– Memorial Sloan Kettering Cancer Center, Volunteer

– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskindhelp children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal

– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm

– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving

– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/


Neil Siskind’s Pro Bono
 Work:

– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.

Neil Siskind’s Government Work:

– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:

Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.

Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/

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