Let’s Talk Rent Growth
As of October, the average in year-over-year growth in rent is 13% with an average rent of $1858, which is record growth rate according to Redfin and Zillow. As you can see below, Florida is DOMINATING the market in terms of fastest growing rents with the top 3 spots. This is GREAT news for investors who already own rental properties and incentive to all potential investors to get a piece of the pie!
What are some implications of this?
As I mentioned, if you are currently investing, you are doing well right now. With inflation at an all-time high, having a mortgage that is fixed in place while rents continue to grow, provides a great hedge against inflation. In addition, your cash flow is likely to increase. Because your expenses grow at a slower place compared to rent increase, you can anticipate greater cash flow. For those looking to start investing, even as you are analyzing potential deals and not currently seeing good cash flow, with the pace of rent growth where it is, you can consider cash flow growth a factor in your deal analysis!