Rental prices are rising as home values drop

Even as home values and sales are decreasing, data shows that rental prices are rising in a majority of markets across the U.S.

There are two forces driving these higher rents.   One is demand for rentals from people that are worried about buying a home that will only drop in value with home prices still being too high.  The second is the credit crunch that is driving the cost of homeownership up even as home prices drop.

Third quarter data from Reis, a real estate research firm, shows that actual rent paid (not including free months of rent) rose in 78 of the 79 markets in the firm’s data.

Most of the increases were in markets that saw hugh run-ups in the housing boom such as New York City, San Francisco, and Miami.

To read more about increased rents head over to the Sun Sentinel.