Inflation and the recession continue to rock the economy. Interest and mortgage rates are still climbing, and the new home real estate market has come to halt. It’s not a screeching halt like 2008 because mortgage rates are still obtainable, and there are still cash buyers out there. But as this side of the industry slows down, the rental side is soaring. It’s Economics 101 – when one market goes down, another goes up. It’s good if you’re a real estate agent, but no good if you’re a renter.
Rent.com reports Greensboro, North Carolina, is at the top of the list, with rent hikes of 74.2%. Newport News, Virginia, is second at 60.7% , and Tulsa, Oklahoma, is third at 59.8%. Jon Leckie, top researcher at Rent.com, says increases like this are not unusual, given the amount of people who have been moving to these cities. In actuality, it is unusual – rents haven’t increased this much this fast since the 2008 housing crash.
“We’re seeing a pattern where the markets around the larger metro areas are attracting more people because they’re less expensive, but still within an hour’s commute to a city,” Jon Leckie said to the Epoch Times.
The national average for a one-bedroom apartment rental is $1,770 a month. Greensboro’s rent is below the national average – $1,289 a month. That’s a lot of money but when you compare it to other cities, it’s a bargain. New York City is the most expensive; an average one-bedroom rental there is a staggering $5,760 a month. Boston renters pay an average of $3,080, and San Francisco’s is $3,701 per month.
How Does This Affect Real Estate Marketers?
Real estate marketing will keep rolling as some real estate agents switch from new homes to rentals. Real estate agents can help clients find a perfect rental property, so they won’t have to struggle searching for one online. And agents will always need to buy a product or service. But the rental business is even more competitive so that makes your marketing job even tougher.
Now’s the time to tighten your belt and roll up your sleeves. Be inventive with your campaigns. Offer new products. Be the first one out of the gate. Send an updated rental list to your subscribers once a week. Expand your contacts and network. And an updated real estate agent email list is essential.
If you’re a marketer in the real estate business, you’re going to need a real estate email list that you can rely on. More real estate marketers trust the Email List Company than any other real estate agent list provider in the business.
Everybody needs shelter, whether you buy or rent. Real Estate sales, renting, and leasing is a $3.8 trillion business and accounts for 13% of the country’s gross domestic product. So don’t get down, get busy. There’s money to be made, you just need the right tools and the right attitude to make it.