Vero Beach rental property rates were 4% higher in April than a year before, according to a report from Zillow. That's the fastest increase in two years, outpacing Vero Beach home prices, according to the report.
Vero Beach rental property affordability is getting worse, and it doesn't look like it will be getting better anytime soon. Svenja Gudell, senior director of economic research at Zillow, said "This is here to stay. We will continue to see rental increases, and affordability will worsen before it gets better."
Income Not Keeping Up With Vero Beach Rental Property Increases
Vero Beach rental property rates have been steadily increasing since 2000 and unlike home prices, which took a hit when the bubble burst, there's been no disruption to slow rent prices, explained Gudell. Income hasn't kept up with all these Vero Beach rental property increases. Renters are having to spend much more of their monthly income on rent and it's a concern everywhere.
Low mortgage rates make home buying an attractive option, but large rent checks can make saving for a down payment tough. On a national level, homeowners can pay an average of 15.3% of their income on mortgage payments each month, while renters will dish out roughly 30% on rent. Gudell said tenants in high-income areas can expect to pay closer to 50% of their income on rents.
A new survey by Freddie Mac finds that soaring rents are not turning renters into homeowners, but actually delaying homeownership for many. Of those who experienced a rent increase in the past two years, 70 percent would like to buy a home but cannot afford to at this point. Half (51 percent) said they now have to put off their plans to purchase a home. Some 44 percent indicated they'd like to buy a home and have started looking.
There are bunch of things keeping renters from becoming homeowners and that usually means the folks that would be normally making the switch to become homeowners are still leasing all the rental units.
Get more information as it pertains to Vero Beach rental property and Vero Beach real estate in our section on Vero Beach Real Estate to your right under Vero Beach Real Estate Categories.
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