I was reading this article at the Matrix blog (not to be confused with our recent 'Matrix' land split program that was defeated) about rents going up. Keep in mind when you read it that Mr. Miller is in New York City which is vastly different than my own little market.
I spoke with our Property Manager, the lovely Helena Baughman (I have to write a blog about her someday), about the local rental market. The news is not good.
There is thought to be about 300 rentals available right now in this area, sitting vacant and waiting for new tenants. Couple that with the over 700 listings on the market for sale and it is a touch scary (just in time for Halloween).
Helena tells me that many of the tenants were in the construction business and since the layoffs have begun the tenants are moving on to where there are some jobs. Kingman's recent success was in very very large part due to the money generated by construction. The new Wal-Mart distribution center is suddenly on hold (and could end up being scrapped). That was one ticket this area had for more jobs AND for more people moving to the area. In fact many other business opportunities are likely on hold as well because of the Wal-Mart delay.
Rents are very low right now, certainly lower than would be mortgage payments on a newly purchased home. Landlords are being very competitive for whatever would be tenants that might be out there. Rents are coming down. Last couple of years saw plenty of investors buying up SFR's to put on the rental market and that has led to an oversupply.