You’ve probably heard that the economy is recovering–and it has been since 2009. This has been a leading factor in the positive turn in U.S. household formation, and recent rental trends are proving that this is going to have an effect on housing demand.
Household formation means that groups of people, couples or individuals are venturing out on their own to create a home. Over the last two years, more people are moving out of their parent’s houses and opting to rent their first apartment.
Housing demand is on the rise, which means that prices may be following suit. While this might seem like all bad news, it’s actually a good thing. This could mean that the half-built apartment complex in your neighborhood will finally have the funding and demand to be completed.
Housing formation bottomed out in 2009 and 2010, but it began to steadily increase through 2011 and 2012, and a lot of it has to do with job growth. However, a lot of Millennials are choosing to rent before buying, which means that the housing formation increase may affect apartment hunting more than house hunting.
So how do you make sure that you find an apartment? Well, it always takes a bit of tenacity and time to find the perfect abode in a great area, but you may need to put in just a bit more effort than previously. Start your rental search early, and jump on an apartment quickly. Sometimes apartments get rented out in a matter of hours, so don’t hesitate if you’ve found a place that you love.