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Set Fire to the Rentals

Where, oh where have all the rentals gone?

In this economic climate, some people are still finding it difficult to purchase a home. However, they still have the desire to live in their preferred community, so renting has become an extremely popular choice.

Many buyers today want to test out a community to see if they will really like it before committing to a purchase. To these types of clients, renting for one year to “test” out the area is a very attractive option.

“I’ve already had four clients this year who have rented. They prefer to take some time to see how they will fit in with the town before they buy,” said Carol Lieberman, a licensed salesperson in Scarsdale.

These people are not alone. There are so many renters looking for inexpensive rentals in some communities, that there is now a severe drought of inventory. Many realtors are noticing a lack of rental choices in areas where there used to be options for tenants.

“I’ve never seen the rental market like this before. People are hungry for almost anything that’s out there,” said Jack Marino, a superintendent at a rental building in Rye. “I have people coming up to me all the time to see if there’s anything available, but we’re all full. It’s never been like this.”

Some renters are finding themselves in bidding wars over apartments.

“Bronxville seems like a great area, and I would love to live here and enjoy everything the town has to offer. But it’s been really frustrating trying to find a two-bedroom rental in our price range—everytime something comes on, we find ourselves bidding against so many other people,” said Laurie, a hopeful renter relocating from Florida.

During the depressed economy, demand for rental units had dropped, requiring many landlords to give special deals and incentives to attract tenants. Vacancy rates hit a 30-year high, and renters had the upper hand. Some landlords had been willing to negotiate on lease terms, price and, in some cases, parking and utility bills. They even eased their standards on renters with bad credit.

As the economy has rebounded in our neighboring communities, so has the rental market. The lowest priced available rental in Scarsdale is currently $4,000 per month.

“I was hoping to save as much money as possible towards our house purchase next year. I really didn’t want to go up too high. I’ve seen apartments in this town available before, but they’ve all disappeared,” said Laurie.

“I listed a one-bedroom carriage house two weeks ago, and it had nine showings in one day. We had several interested parties and it rented very quickly,” said Carolyn Sparano, an associate broker in Scarsdale. “I’ve just never seen it like this. Luxury rental properties are sitting longer on the market, and smaller properties, well; you just don’t have enough of them right now.”

Sushi July 30, 2012 at 06:34 PM
Continued........Home prices are falling EVERYWHERE - all over Fairfield County and at least 10% or greater from one year to the next. This is no surprise to anyone selling, buying or even researching the marketplace. Do not rely on your realtor for the truths - do your own homework and research sales yourself. You will see that this report is just one of many realities of what is truly going on in the housing market. There is no uptick in sales unless you want to count foreclosed homes being sold again or short sales and bargain basement sales of existing homes. You can't have a real estate 'uptick' unless you have a job/labor/employment 'uptick' and not just a one month fluke. Let's get real. No jobs growth - no housing market growth. Smoke and mirrors and home transfers hardly qualify as housing "upswing". Wait til after the election before anything happens. And even that is precarious given that the outcome is not going to yield any immediate, if any changes for improvement. Job creation, small business growth and opportunity, more lending and incentivizing companies to bring jobs back to America and create a new economy will all need to stand up and deliver by contributing to a secure economy and future revitalization in the housing market. It's pretty simple. No jobs, no housing movement. Let's take the blindfolds off the housing market. Silver lining does not exist today. It is smoke and mirrors you are seeing!
Billy L August 10, 2012 at 08:26 PM
What is wrong with what he said? The people who should be deported, Jeff Meyer, are the people are criminally trespassing, aka illegal immigrants. Please tell me why I should be supporting with my tax dollars some one else's rent? How is that fair or right? I earned my money and they didn't...
Aidan August 10, 2012 at 08:35 PM
You know your stuff.
Watchdog August 10, 2012 at 08:52 PM
Another point of view which I feel has validity. http://www.heraldtribune.com/article/20120808/ARTICLE/120809648/-1/news?p=2&tc=pg
clarity August 11, 2012 at 01:57 AM
so thankful to all for the wisdom

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