Quote:
Originally Posted by Porsche-O-Phile
As for 2008, Johnson predicts more of the same; the strong rental markets will stay strong and the weak ones weak.
"Foreclosures have not worked their way through the system yet," he said. Overall, that will mean both additional supply on the market but more renters as well, leading to a flat national market.
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I personally haven't seen weakness. In fact, I'd say the demand for rentals in western TN has grown due to tightened lending. It's been 6-8 months since I've had a vacancy. My tenants are not getting financing to buy a home, so they stay put. I hold the line on rents and try my best to keep 'em happy. I am still not seeing rents rise with inflation, though.
On the other hand, cities with widespread investor/speculator participation are going to crash. I do not know how this will translate into rental rates, but I would not want to be an owner in the hottest bubble zones.
Renters with good credit ratings and solid jobs are in a great position regardless of location.