Why Tenants are less likely to move

Why Tenants Are Less Likely to Move

Rental demand will remain strong due to rising mortgage rates and homeownership costs, which will stop many people from being able to enter the buyer’s market in the new year. This forces many would-be homebuyers to remain in the rental market, signing leases through 2023 and beyond, exacerbating an already high-demanded rental market.

Thomas LaSalvia, a director of financial analysis at Moody’s Analytics “There’s an anticipation that interest rates still have to rise in the next six months for the Fed to get inflation back into its comfort zone,” “And with that, mortgage rates will stay relatively high.”

Many landlords whose tenants were protected by the federal CARES Act or other state-run renter protection programs during the pandemic are now trying to recoup lost income and are raising rents accordingly.

Older and more financially stable individuals can be more appealing to landlords, and younger potential renters might find their rental applications falling to the bottom of the pile.

While the real estate markets throughout the country are constantly shifting, many felt that heading into 2023, we’d see a calmer market overall than we had from 2020-2022