Sheriffs are delivering eviction notices to renters when the landlords don't pay the mortgage payment.
Some renters are given 30 days to find a new place to live, some only get 10 days when the police show up with the eviction notice.
Many renters are also not getting their rental deposit back.
- "We felt dumbfounded," says Jenell, a stay-at-home mom. She and her husband, an electrician, lost their $5,000 rental deposit. "We would have been homeless if someone from our church hadn't loaned us money for a deposit on another place. I believe the stress caused my miscarriage."
Rents are increasing, and vacancy rates are down, around the country as a result of the mortgage loan crisis.
- Average rent increase in 2008 projection: 5.3%
- Average rent increase in 2007: 3.1%
- San Francisco - Median rent increase 14.6% - $1,810 a month in 2008Q1
- Seattle - 10.3% increase to $1,211
- Washington D.C., 5% - $1,687
- Also hot; Salt Lake City, Nashbille, Philadelphia, Austin
2004 - 2006 - increase of 1.2 million households as renters, more than loss in renters from 2002 to 2004.
- "The rental market is now very, very strong," says Allison Atsiknoudas, CEO and co-founder of Investment Instruments, which provides Web-based tools for the real estate industry and tracks rental market rates. "It's stable. The increasing number of foreclosures in the market has definitely increased demand for rentals."
Rising demand may spur construction of more apartments, such as in Dallas, San Antonio, and other places with stable job markets.
- "In some areas, because the demand for rentals is happening closer to cities and job markets, there will ultimately be demand for new construction," says Peter Chinloy, a real estate professor at American University's Kogod School of Business. "As rents keep rising, there is more demand, although it also means it's harder to find rental units."
Some renters are waiting for housing prices to go still lower, and stricter lending rules are making it harder to get into a home. Lenders are requiring larger down payments, and no longer bending the rules.
Cost of processing a foreclosure: $50,000
February 2008 - 223,651 U.S. properties in foreclosure (60% increase from Feb 2007)
- 1 out of every 557 U.S. households
Ideas for products:
Sources
- National Multi Housing Council
- Article
