Tuesday, November 11, 2014
A closer look at specific markets paints a much clearer picture. A 2001 study in Los Angeles discovered that the city’s apartment vacancy rates were mostly determined by low income and the lack of multiple family units, such as apartments. The lack of top-notch amenities, such as those found in quality apartments in Temecula, CA, also compels some tenants to leave. Having said that, only a small portion of the city’s population of tenants were elders and the majority are comprised by minority groups that typically have low income. This didn’t stop rental rates from increasing, similar to today’s projected increases due to problems in supply and demand. Whatever it is that causes rents to go up, the fact remains that people should lock in the low rates right now while they still have the chance.